Retails sales fall a record 16.4 percent in April, far worse than predicted
∑ Retail sales fell 16.4% in April, far worse than the 12.3% predicted.
∑ Damage was felt across the board, with clothing stores faring worse and grocers showing the only gains.
∑ Restaurants lagged badly as did service stations.
Jeff Cox, CNBC
May 15, 2020
Consumer spending tumbled a record 16.4% in April as the backbone of the U.S. economy retrenched amid the coronavirus pandemic, according to a government report Friday.
Economists surveyed by Dow Jones expected the advanced retail sales number to fall 12.3% after Marchís reported 8.3% dive already had set a record for data going back to 1992. The March numbers were revised to be not as bad as the 8.7% initially reported.
Some 68% of the nationís $21.5 trillion economy comes from personal consumption expenditures, which tumbled 7.6% in the first quarter just as social distancing measures aimed at containing the coronavirus began to take effect.
Fridayís data showed that the slowdown continued into the first part of the second quarter as layoffs began to mount and consumers went into lockdown.
Total spending amounted to $403.9 billion, with the biggest factor in the downturn being a collapse in clothing and accessories that amounted to an 89.3% fall from the same period a year ago. Retail trade overall saw a 15.1% drop from March and a 17.8% slide from April 2019.
The retail industry, particularly brick and mortar stores, already had been in a state of peril, and the coronavirus measures have only added to the misery.
Furniture stores also got clobbered (-66.5%) as did electronics and appliances (-64.8%), sporting goods (-48.9%) and restaurants and bars (-48.7%). The sole bright spot was grocery stores, which rose 13.2% as Americans ate at home instead of going out, a move that pushed overall food and beverage sales up 12%.
Less driving and lower gasoline prices sent sales at stations down 42.8% while motor vehicles and parts dealers saw a 32.9% decline.
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