Slight rise in US retail sales in April
Two thirds of the US economic activity is made up of consumer spending and after a 0.5% decrease in March, US retail sales increased by 0.1% in April. Although only slight this is the biggest rise in 9 months.
The statistics released by the Commerce Department suggest that consumers are increasingly spending money in the commercial sector. This is an upturn for the overall economy as well as businesses operating in the US.
The consumer spending part of US gross domestic product relates best to core sales which exclude petrol, cars, and building materials. These sales saw a rise of 0.5% projecting a positive message from the GDP.
Other areas also prospered: car sales in April increased by 1%, clothing sales by 1.2%, and sales at general merchandise stores like department stores by 1%.
The fact that more people are spending money in key consumer areas is positive both economically and commercially. Businesses investing or already invested in the US can rely on consumers to generate sales and drive business forward, even in testing times.