April US Retail Sales Get Boost from Tax Refunds

US retail sales grew in April as consumers took advantage of extra cash from tax refunds.

Revenue increased 0.5% — adjusted for seasonal variation — from the previous month to $757.1 billion, according to data the US Census Bureau released last week. It was the seventh consecutive month sales improved, even amid rising inflation and gas prices.

“Retail sales continued to grow in April despite higher gas prices driven by the ongoing conflict in Iran, cautious consumer sentiment and the persistent concerns about sustained inflation,” said National Retail Federation (NRF) CEO Matthew Shay. “Spending on household priorities remains solid, supported by a steady labor market, wage growth and a significant influx of cash from tax refunds.”

Sales were up 4.9% from April last year, while total sales for the February to April period advanced 4.4% by the same parameter, the Census Bureau reported.

The NRF, which monitors spending using credit- and debit-card purchase data rather than survey-based numbers, stated that April sales were primarily flat from last month.

Year on year, April’s sales grew in eight of the nine categories the NRF monitors. The clothing and accessories segment — which encompasses jewelry — gained 10% year on year and 0.6% compared to the previous month. The building and garden-supply stores category was the only one that fell year on year, dropping 2.7%.

Image: Women at a shopping mall. (Shutterstock)