US retail sales stall in April as stimulus boost fades

American consumers – the engine of the US economy- took an unexpected breather from spending in April as the boost from stimulus cheques faded.

Retail sales in the United States unexpectedly stalled in April as the boost from stimulus cheques faded, but an acceleration is likely in the coming months amid record savings and a reopening economy. The report from the US Department of Commerce on Friday also showed retail sales in March were much stronger than previously estimated, setting consumer spending on a higher growth path heading into the second quarter. There were also signs that Americans were starting to shift their spending from goods to services like restaurants and bars, with more than a third of the population vaccinated against COVID-19. “There will be momentum going into the second quarter for economic growth because sales were off the charts in March,” said Chris Rupkey, an economist in New York City.