U.S. Retail Sales (April 2026)

U.S. retail sales post a solid gain in April, but higher prices a factor

• Retail and food services sales rose 0.5% month-over-month (m/m) in April, in line with consensus expectations. However, sales gains were largely due to higher prices, with inflation picking up in April, real retail and food services sales fell 0.2% m/m.
• To no surprise, higher gasoline prices were part of the story, with sales at gasoline stations rising 2.8% m/m after a 14% increase in March. Meanwhile, sales of autos and parts fell 0.4% m/m and building materials and garden retailers rose only 0.1% m/m.
• Looking at the “control group”—which excludes volatile sales of gasoline, autos & parts and building materials and garden equipment— sales rose 0.5% m/m, also in line with expectations. Sales in other categories were mixed. Furniture and home furnishings stores gave back March's gain (-2.0% m/m), clothing sales fell (-1.5% m/m), while general merchandise stores (+0.1% m/m) and health and personal care stores (-0.0% m/m) were basically flat. Strength was seen in electronics and appliances (+1.4% m/m) and sporting goods stores (+1.4% m/m).
• Sales at non-store retailers, mostly online sales, posted another solid monthly increase (+1.1% m/m), and were up 11% from a year-ago.
• Spending at bars and restaurants – the only service category included in the report – rose a healthy 0.6% m/m in April after a soft March reading.  Zooming out on the longer-trend spending is only up 2.8% y/y, down from 6.9% growth a year ago.

Key Implications

• As expected, retail and food services—which are measured in nominal terms—rose in April, boosted by higher prices. The drop in real sales does come after two solid months in February and March, and real sales are up 1.0% y/y. The softness in real terms is mitigated somewhat by a decent gain in "core" sales in April, coming on top of upward revision to the prior two months. Core sales were up a solid 5.7% y/y, pointing to still solid gains in real terms, and recent trends point to renewed momentum after a soft winter.
• Overall, the upward revisions to prior months should give a bit of a boost to consumer spending in the first quarter, and have started the second quarter with decent momentum. That said, consumers are still contending with higher gasoline prices May, and that is likely to take a toll on discretionary purchases. In the near-term, higher tax refund checks and lower income taxes will provide some cushion.

Disclaimer

This report is provided by TD Economics. It is for informational and educational purposes only as of the date of writing, and may not be appropriate for other purposes. The views and opinions expressed may change at any time based on market or other conditions and may not come to pass. This material is not intended to be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. The report does not provide material information about the business and affairs of TD Bank Group and the members of TD Economics are not spokespersons for TD Bank Group with respect to its business and affairs. The information contained in this report has been drawn from sources believed to be reliable, but is not guaranteed to be accurate or complete. This report contains economic analysis and views, including about future economic and financial markets performance. These are based on certain assumptions and other factors, and are subject to inherent risks and uncertainties. The actual outcome may be materially different. The Toronto-Dominion Bank and its affiliates and related entities that comprise the TD Bank Group are not liable for any errors or omissions in the information, analysis or views contained in this report, or for any loss or damage suffered.