U.S. retail sales slow to 0.5% in April as gasoline costs squeeze discretionary spending

U.S. retail sales rose 0.5% in April, down from a revised 1.6% gain in March, as higher gasoline prices tied to the Iran war reduced household spending power for discretionary items, Commerce Department data showed May 14, 2026. Excluding gasoline, retail sales increased 0.3%, slowing from 0.7% in March. Department store sales fell 3.2%, furniture and home furnishings declined 2%, and building materials and garden equipment rose 0.1%. Online retailers gained 1.1%, electronics and appliance stores rose 1.4%, and restaurant sales increased 0.6%. The average U.S. price for regular gasoline rose to $4.53 a gallon on May 14, up $1.35 from a year earlier, according to AAA, after the shutdown of the Strait of Hormuz disrupted about one-fifth of global daily oil supply. Inflation data also strengthened this week: producer prices rose 1.4% in April, while consumer prices increased 3.8% from April 2025. Walmart and Target are expected to report quarterly results during the week of May 18, 2026.