Retail Sales Fall Flat, Hurt By Surge in Gas Prices

The strain of rising prices and higher interest rates may finally have pushed Americans to a breaking point.

Retail sales were flat in April after rising 0.6 percent in March, the Commerce Department said on Wednesday. Excluding car dealerships, auto repair and parts stores, and gas stations, sales fell 0.1 percent.

Economists had expected a rise of 0.4 percent in overall sales and a rise of 0.1 percent in sales excluding gas stations, auto parts stores, and car dealers.

Sales at gas stations surged 3.1 percent for the month, reflecting rising fuel prices. It is likely that higher prices at the pump forced Americans to cut back on spending in other parts of the economy.

The numbers are seasonally adjusted but not adjusted for changes in prices. In April, the consumer price index rose by 0.3 percent. The price of goods excluding energy fell 0.1 percent, partly explaining the unexpected weakness in retail sales.

Online sales fell 1.2 percent. Sales at furniture shops declined 0.5 percent. The category that includes sporting goods stores, music stores, and book stores saw a 0.9 percent decline. Health and beauty store sales fell 0.6 percent.

Americans did spend more at grocery stores, where sales rose 0.6 percent. Sales at clothing stores climbed 1.6 percent. Department store sales rose 0.5 percent. General merchandise store sales, however, fell by 0.3 percent.

Sales at appliance and electronics stores jumped 1.5 percent.

Sales at car dealers fell 0.8 percent.

Restaurant and bar tabs rose 0.2 percent despite a 0.2 percent decline in the prices of food away from home.