U.S. Retail Sales Climb 0.5% in April, Bolstered by Gas and Online Spending
By TopHolding Editorial · Thursday, May 14, 2026 at 12:00 AM
U.S. retail sales rose 0.5% in April, matching economist expectations, as consumers continued to spend despite inflationary pressures. Gains were broad-based across categories, led by gas stations and nonstore retailers.
U.S. retail sales advanced 0.5% in April, aligning with consensus expectations and indicating continued consumer resilience despite persistent inflation. This headline figure, complemented by upward revisions to prior months, shows retail sales are 4.9% higher compared to a year ago. Excluding the volatile automotive sector, sales increased by 0.7% for the month, extending the annual gain to 6.3%.
The increase in April was prominently driven by robust activity at gas stations, which saw a 2.8% rise as fuel prices reached their highest levels since 2022, and nonstore retailers (e-commerce and mail-order), which continued their strong performance. Conversely, sales of automobiles and clothing experienced declines during the month. Growth was broad-based, with nine out of thirteen major sales categories reporting an increase, underscoring widespread consumer engagement.
A key metric for economic analysts, "core" retail sales—excluding autos, building materials, and gasoline—which offers a clearer gauge of underlying consumer demand and is crucial for GDP estimation, chalked up a 0.5% gain in April. Including revisions from earlier periods, this measure climbed 0.8%. The standout performer within this core grouping was nonstore retailers, climbing 1.1% in April, marking its third increase over 1.0% in the last four months. This category has seen an 11.1% increase over the past year, making it one of the strongest segments. However, clothing stores and furniture stores experienced declines of 1.5% and 2.0%, respectively. Spending at restaurants and bars, the only service-related indicator in this dataset, rose 0.6% for the month but shows a more modest 2.7% annual growth.
While nominal retail sales have expanded by 4.9% over the last year, it is important to consider the impact of inflation. When adjusted for inflation, "real" retail sales have grown by only 1.1% over the same period and remain below their peak observed in April 2022, suggesting limited real growth over the past four years. This broader perspective tempers the seemingly strong headline numbers for April. Additionally, it is possible that larger-than-normal tax refunds temporarily boosted consumer spending power. The economic landscape remains dynamic, with ongoing geopolitical events potentially influencing future retail performance.
Key terms
1. **Retail sales:** A measure of the total sales of goods by retailers to consumers, providing an indication of consumer spending and overall economic health.
2. **Core retail sales:** Retail sales excluding certain volatile categories such as automobiles, building materials, and gasoline, often used to get a more stable and accurate picture of underlying consumer demand.
3. **Nominal vs. Real retail sales:** Nominal retail sales are measured in current dollars and are not adjusted for inflation, while real retail sales are adjusted for inflation, providing a more accurate measure of purchasing power and sales volume over time.