U.S. April Retail Sales Rise 0.5%, Cooling Near-Term Fed Rate-Cut Bets

U.S. retail sales rose 0.5% in April 2026 from March, matching economists’ expectations and marking a third straight monthly increase, the Commerce Department said May 14, 2026. Sales climbed 4.9% from a year earlier, the strongest annual gain since August 2025, reinforcing expectations that resilient consumer spending could limit the Federal Reserve’s room to cut rates soon. Nine of 13 major retail categories increased. Online retailers, electronics stores and sporting goods posted gains, while auto sales weakened. Gas station receipts rose 2.8% as the Iran conflict lifted energy prices; U.S. gasoline prices jumped 12.3% in April to the highest level since 2022. Grocery spending also increased, reflecting pressure from higher food costs. The control-group measure, which excludes autos, gasoline, building materials and food services and feeds into GDP calculations, rose 0.5%, above expectations, with March revised higher. Analysts said higher tax refunds and equity-market gains supported higher-income consumers, while lower-income households showed signs of strain as refunds were spent faster and inflation eroded budgets.