U.S. retail sales increase again, but higher gas prices and inflation played a big role

Retail sales rose in April for the third straight month, but much of the increase was driven by higher gasoline prices rather than stronger underlying demand. After adjusting for inflation, spending appears softer, suggesting consumer activity was mixed rather than robust.

Analysis

Retail sales rose in April for the third straight month, but much of the increase was driven by higher gasoline prices rather than stronger underlying demand. After adjusting for inflation, spending appears softer, suggesting consumer activity was mixed rather than robust.