Steadily increasing prices had no apparent effect on consumer demand as April retail sales grew month over month and year over year.
This week, the U.S. Census Bureau said overall retail sales in April were up 0.9 percent seasonally adjusted from March and 8.2 percent year over year. The increase was somewhat less than the March month over month but nearly a point higher from a year ago.
The pandemic seems to have made Retailers more resilient, too. They have had to juggle multiple challenges, including higher energy costs, rising workforce wages, higher rents, and increasing wholesale and supply chain costs.
“April’s retail sales data is encouraging because it shows consumers are taking higher prices in stride and remain resilient,” said NRF Chief Economist Jack Kleinhenz. “High gasoline prices, rising interest rates, and price pressures across the board continue to be headwinds to spending, but wage and job gains are offsetting that with a tailwind that should bode well for moderate-but-steady spending growth going forward.”
The U.S. Census Bureau report also showed that April sale increases included two-thirds of retail categories, with online, clothing, and grocery leading the gains.