Global Courant 2023-05-16 22:11:23
STORY: US retail sales have risen slightly over the past month, beating expectations that a recession is imminent.
Data from the Commerce Department on Tuesday showed a recovery in spending of 0.4% – slightly less than expected but still solid, due to a decline in inflationary prices.
Receipts at car dealerships rose 0.4% in April after back-to-back monthly declines.
Online retail sales were up 1.2% – and consumers also spent more in health and personal care stores.
And restaurants and bars, the only service category, performed well, up 0.6%. Economists consider dining out to be an important indicator of household finances.
Consumers cut back on hobbies, down 3.3%, as well as spending in furniture, electronics and appliance stores, which fell about half a percent.
And while building materials and garden suppliers received a modest boost, Home Depot cast a shadow over the industry on Tuesday.
The largest home improvement chain in the US reported a loss of sales in the first quarter, blamed on a rainy spring and falling lumber prices.
More ominous, however, was the cut in Home Depot’s annual sales forecast — and the forecast of a sharper-than-expected decline in annual profits.
Many Americans who remodeled their homes during the health crisis have now cut back on discretionary spending, while costs, though cooling, are still high.
Shares of Home Depot fell during Tuesday’s trading, along with those of smaller rival Lowe’s.
