American consumers spent more at restaurants, appliance stores, garden and home improvement centers, and home furniture retailers in April.
Spending at restaurants and bars increased by 1.2 percent last month, an indication that U.S. consumers are not shying away from discretionary spending despite a volatile stock market and Wall Street analyst warnings that tariffs might hamper economic growth. Earlier this week, the Labor Department’s consumer price index for dining out increased 0.5 percent.
This followed a three percent rise in March spending at dining and drinking establishments, according to a Commerce Department report released Wednesday. Compared with a year ago, spending was up 7.8 percent, far outpacing the 3.9 percent year-over-year increase in dining out prices the Labor Department reported this week.
Sales rose 0.3 percent at appliance stores and furniture stores. For furniture stores, sales are up 7.8 percent compared with a year ago. Appliance and electronic store sales up 0.3 percent compared with April of 2024. Sales at garden centers and home improvement outlets rose by a sharp 0.8 percent, bringing the year-over-year increase to 3.2 percent.
There were some signs that consumers pulled back spending following a pre-tariff rush in March. Sales at car dealers dipped 0.1 percent in April after surging 5.5 percent in the previous month. Compared with a year ago, however, sales were up 9.8 percent. New car prices were flat for the month but used car prices dropped, so the decline in sales may represent falling prices rather than a drop in the number of autos purchased.
Across all categories, retail sales edged up 0.1 percent in April. Excluding motor vehicles and gas stations, sales climbed 0.2 percent. The gain in March was revised up to 0.5 percent from the previous estimate of 0.4 percent.
Gas station sales dropped 0.5 percent, likely driven by a sharp downturn in gasoline prices. Simiarly, spending at grocery stores fell 0.1 percent, matching the 0.1 percent decline in food prices.
Sales fell at health and beauty stores and department stores. Sales at clothing stores fell by 0.4 percent, likely driven by the 0.2 percent decline in apparel prices. The category that includes sporting goods stores, book shops, and hobby stores was a sharp 2.5 percent decline, partially reversing the 3.8 percent surge in March. Compared with a year ago, sales were still up by 3.5 percent.
