Retail Sales Hold Up in April as Consumers Keep Spending — Evening Brief – 05.14.26

The U.S. consumer showed continued resolve in April, with retail sales rising 0.5% month-over-month to $757.1 billion, matching consensus expectations and offering reassurance that the tariff-driven pull-forward surge in March was not simply borrowing from future demand. The data, released by the U.S. Census Bureau, painted a picture of an economy still spending but doing so at a more measured pace after March’s revised 1.6% spike.

On a year-over-year basis, the headline figure accelerated to 4.9% from 4.2% in March, and total sales for the February through April period ran 4.4% above year-ago levels.

Underneath the headline, core retail sales, stripping out motor vehicles and parts, rose 0.7% month-over-month, in line with consensus. Sales excluding gas and autos advanced 0.5%, a tick above the 0.4% forecast, though moderating from March’s upwardly revised 0.7% gain. Non-store retailers continued to outperform, with sales up 11.1% year-over-year, reflecting the sustained shift toward e-commerce. Gasoline stations posted the sharpest annual gain at 20.9%, driven by price effects, while food services and drinking places rose a more modest 2.7% from a year ago.

Separately, the labor market data released alongside retail sales introduced a note of caution. Initial jobless claims for the week ended May 9 rose by 12,000 to 211,000, topping the 208,000 consensus and climbing from the prior week’s revised 199,000.

The four-week moving average edged up to 203,750. Continuing claims came in at 1.782 million, slightly below the 1.790 million forecast but above the prior week’s revised 1.758 million. The insured unemployment rate ticked up to 1.2%.