Overview

• Retail sales increased by a marginal 0.1% in April, a sharp slowdown from the 1.7% surge in March driven by pre-tariff auto purchases.
• Core retail sales, which exclude autos, gasoline, building materials, and food services, fell 0.2%, signaling weaker consumer spending overall.
• A temporary 90-day tariff truce between the U.S. and China reduced duties but left long-term trade policy uncertainty unresolved.
• Discretionary spending on services like travel and hospitality declined as economic uncertainty and stock market volatility weighed on consumer confidence.
• Inflation eased for the third consecutive month in April, providing some relief, though concerns about future price increases persist.