Retail sales growth slowed in April as Iran war fuels higher gas prices
Summary
Retail sales in the U.S. grew slower in April compared to March, mainly because higher gas prices linked to the war in Iran left shoppers with less money to spend on nonessential items. Gas prices rose sharply after the Iran conflict shut down a key oil route, affecting consumer costs and overall inflation.Key Facts
- Retail sales in April increased by 0.5%, down from 1.6% growth in March.
- When gas sales are excluded, retail sales in April rose 0.3%, slower than the 0.7% growth in March.
- Sales dropped 3.2% at department stores and 2% at furniture stores in April.
- Online retailers and electronics stores saw gains of 1.1% and 1.4%, respectively.
- The Iran war caused the shutdown of the Strait of Hormuz, cutting off about 20% of the world’s daily oil supply.
- Gas prices averaged $4.53 per gallon in April, up $1.35 from a year ago.
- Inflation indicators rose sharply in April, including a 1.4% monthly jump in producer prices and a 3.8% increase in consumer prices over the year.
- U.S. employers added 115,000 jobs in April despite economic challenges from inflation and higher energy costs.
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