Retail Sales Chugged Along In April Despite Fuel Crunch

By

Diccon Hyatt

Diccon Hyatt

Full Bio Diccon Hyatt is an experienced financial and economics reporter. He's written hundreds of articles breaking down complex financial topics in plain language, emphasizing the impact that economic currents would have on individuals' finances and the market. He has a Bachelor's degree in English from the University of Delaware.

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Published May 14, 2026

09:34 AM EDT

A customer shops for produce at an H-E-B grocery store on May 11, 2026 in Austin, Texas.

Economists have thought that higher gas prices would cause households to spend less in other areas. Brandon Bell / Getty Images

Key Takeaways

  • Retail sales stayed resilient, rising 0.5% in April from March.
  • Spending on gasoline increased the most out of the major categories, rising 2.8% due to soaring prices from the Iran war. Taking out that surge, spending rose 0.3%.

Get personalized, AI-powered answers built on 27+ years of trusted expertise.

Retail sales stayed resilient in April as Americans spent far more at gas stations, and a bit more at most other kinds of stores.

Spending at retailers rose 0.5% in April from March, not adjusted for inflation, down from a 1.6% monthly increase in March, the Census Bureau said Thursday.1 That was in line with the expectations of forecasters, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.2 The uptick was largely due to a 2.8% increase in sales at gas stations, reflecting a surge in prices driven by the energy crisis stemming from the Iran war. Taking out fuel, sales rose 0.3%.

What This Means For The Economy

The uptick in retail sales indicates that while consumers may be pessimistic, the lack of confidence hasn't yet translated into a reluctance or inability to spend, keeping the main engine of the U.S. economy running.

The acceleration of retail sales showed U.S. consumers staying resilient despite the drag from higher gas prices, surging inflation, and a deepening sense of pessimism about personal finances and the health of the economy, as shown in public opinion surveys. Consumer spending is the foundation of the U.S. economy, accounting for 68% of the Gross Domestic Product.3

Related Education

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That foundation isn't crumbling, although the April report did show a few cracks. While sales increased in most categories, spending fell 3.2% at department stores, 0.4% on autos and parts, 1.5% on clothing, and 2% on furniture.

"Consumers aren’t in a recession, but they’re not powering the economy either," David Russell, global head of market strategy at TradeStation, wrote in a commentary. "Higher inflation, tariffs and demographic changes have taken a toll on retail spending as a growth driver."

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  1. Census Bureau. "Advance Monthly Sales For Retail And Food Services, April 2026."
  2. MarketWatch. "U.S. Economic Calendar."
  3. Bureau of Economic Analysis via Federal Reserve Economic Data. "Shares of gross domestic product: Personal consumption expenditures."

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