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American consumer spending slowed in April as soaring gas prices hits households

The Independent·Anne d'Innocenzio·18 days ago
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American consumers reined in spending during April, as escalating gas prices , exacerbated by the ongoing conflict in Iran , began to curb discretionary purchases like clothing and furniture. While economists acknowledge that robust income tax refunds have sustained consumer activity, concerns are mounting that this spending momentum will wane as the benefits from these refunds diminish and the cumulative effect of higher fuel costs continues to impact households. Commerce Department data released Thursday revealed that retail sales increased by a modest 0.5% in April, a sharp deceleration from the revised 1.6% growth recorded in March. March had marked the largest monthly surge in retail spending in over three years, largely driven by a rapid spike in gas prices. Excluding gas sales, April's retail figures rose by 0.3%, down from a 0.7% pace in March. Sales at gas stations themselves saw a 2.8% increase in April, a stark contrast to the 20.9% hike in March that reflected the initial surge in fuel costs.…

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