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Mixed picture from US April sales

Official figures show that US retail sales weakened slightly in April, despite some signs of resilience.

The Commerce Department said overall retail sales declined 0.2% after a 0.2% rise in March. That was slightly more than the 0.1% decrease that economists had forecast.

But excluding car sales, April's figures was up 0.5% after a 0.4% March pick-up - significantly better than expected.

The Federal Reserve has cut official interest rates 3.25 percentage points to 2% since last September to shield the economy from a credit crunch sparked by the housing crisis, hoping to keep consumers from cutting the spending that fuels two-thirds of US economic activity.

In April, sales of building materials gained 1.9%, more than reversing March's 1.5% fall. General store sales were up 0.5%, well ahead of March's 0.1% rise.

But car dealers suffered a 2.8% drop in sales during April, adding to the 0.5% decline posted in March.