Washington —
The war with Iran is forcing Americans to pay more for gasoline as people cut back on purchases of some long-lasting goods.
Retail sales climbed 0.5% in April from the prior month, the Commerce Department said Thursday, down from March’s 1.6% and marking the third consecutive monthly increase. That was slightly below the 0.6% increase economists projected in a poll by data firm FactSet. The figures are adjusted for seasonal swings but not inflation.
Retail spending was up across most categories last month, but it was down at furniture stores (-2%), car dealerships (-0.5%), department stores (-3.2%) and clothing shops (-1.5%). Meanwhile, sales at gas stations rose just 2.8% in April, down sharply from March’s steep 13.7% increase, which brought down the headline figure.
A measure of retail sales that strips out volatile categories — such as sales of building materials and gasoline — increased 0.46% in April, higher than the 0.2% economists projected. That figure is known as the control group, which economists say is a good measure of underlying consumer demand.
