After increasing 10.7 percent in March from February, retail sales were flat in April, holding March’s gains, although just missing the 0.8-percent nudge that economists had expected but still lofting 43 percent above those in April 2020, according to data firm Affinity Solutions.
Sales for the month in bars and restaurants more than doubled over the previous 12 months, according to Affinity, and were just 2 percent below February 2020’s levels, Commerce Department figures show.
Consumers also spent more buying vehicles, the Wall Street Journal reported.
Shoppers, however, spent less on furniture and sporting goods and at big-box retailers.
Clothing sales were off 28 percent from March, according to Bank of America’s credit-card tracking monitor.
March’s spending spurt was attributable to lower-income households spending stimulus money, according to a Bank of America study, as well as some shoppers using the government’s checks to satisfy pent-up demand.
Those expenditures have since begun to taper off, government figures show.
For April’s sales to sustain March’s gain is “somewhat remarkable,” according to WSJ analyst Justin Lahart in a 16 May commentary, especially when job gains during the same month totaled a disappointing 226,000.
“It’s a sign that consumer spending is still pretty healthy at this point,” Scott Brown, Raymond James Financial’s chief economist, agreed.
A survey covering the ten days ending 3 May by research firm Cowen found that Americans’ willingness to enter stores, attend church in person, and otherwise congregate with others, as well as to be vaccinated, continues to increase.
TREND FORECAST: As we have forecast, there will be a Biden Bounce from the trillions of dollars of cheap money pumped into the economy and the record-low interest rates that have inflated equities and residential real estate markets. Again, as we have forecast, the bounce will be up and down and then go flat by years’ end.
Also, the reality on Main Street has finally hit the political world – the “lawmakers” who suck off the public tit never worry about running a business or going to work to earn an income – have finally woken up to the political disaster they created by locking down states and cities to fight the COVID War.
Thus, that is why the CDC has suddenly reversed its strict orders and eased mask and other mandates. Indeed, the bottom line is the decline in tax revenues and spikes in crime that have woken them up to the reality of the real world.
