US retail sales rebound as rising employment and tax cuts boost confidence
A strong job market and higher take-home pay in the wake of tax reductions cushion the blow from costlier fuel
New York — US retail sales rose in broad fashion last month as bigger after-tax pay cheques helped compensate for rising fuel costs, signalling consumer demand was off to a firm start this quarter. The value of sales increased 0.3% in April, matching the median forecast, after a 0.8% advance in the prior month that was stronger than initially reported, Commerce Department figures showed on Tuesday. So-called retail-control group sales, which are used to calculate gross domestic product and exclude food services, vehicle dealers, building materials stores and petrol stations, improved 0.4% after an upwardly revised 0.5% gain. The results add to the expectation that consumer spending, the biggest part of the economy, will rebound from its first-quarter weak patch. A strong job market and higher take-home pay in the wake of tax reductions are buoying Americans’ wherewithal to spend and cushioning the squeeze from costlier fuel that leaves people with less money to buy other goods and s...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.