Previous month, retail sales in the US dropped down for second time over a span of 3 months, a signal that the US citizens are cautious about how much money they shell out with the country’s economy experiencing increased blowouts.
The sales at US retailers dropped 0.2 percent in April, said the government on Wednesday. The sales reduced in many significant sectors including home centers, automobiles as well as online stores.
Besides, due to a reduction in the sales of brand new cars in April, the receipts also dropped 1.1 percent at the car dealers. Moreover, the sales also fell by a major 1.3 percent for the electronic stores as well as 1.9 percent for garden and home centers. Furthermore, internet retailers, pharmacies as well as clothing stores all showed a 0.2 percent drop in sales. On the other hand, the sales increased by 1.8 percent at the gasoline stations, showcasing increased prices at the fuel pump. However, this isn’t good news for the consumers or economy.
The major challenges facing the nation are slow business investment, weak manufacturing industry as well as the prevailing trade war with China.
But still, according to chief economist David Berson from Nationwide Economics, with the strong employment gains as well as quick wage growth, the spending trend from consumers still should be faster in the country.
The economists expect to get better readings from US retail sales in the coming few months while the positive employment market trend provide for consumer activity.