Economists say US Retail Spending increased in April

According to economists, US shoppers increased retail spending for the fourth straight month in April, with inflation remaining near its highest level in 40 years.

Economists surveyed by The Wall Street Journal estimated that the retail sales increased a seasonally adjusted 1% in April from the month earlier. Economists also think that sales rose 0.4% excluding spending on vehicles. 

Retail sales are not inflation-adjusted. This means that while consumers continue to spend more, prices are rising rapidly, so consumers are likely to be less due to continuously increasing prices. For example, retail sales in March increased due to a surge in gasoline purchases, primarily coupled with record prices after Russia's invasion of Ukraine in late February.

According to the Consumer Price Index of the Labor Department, consumers continue to feel tensions in high inflation, rising 8.3% year on year in April.

Inflation-adjusted consumer spending accelerated in the first quarter compared to the end of last year, according to the Commerce Department consumer spending is the driving force of the US economy.

Consumers have also shifted some spending from commodities to services as the winter wave of Covid-19 subsided from the Omicron variant and many resumed more personal activities.