U.S. retail sales slow to 0.5%, squeezed by rising gas prices

U.S. retail sales rose 0.5% in April, according to Commerce Department data. This figure marks a deceleration from the revised 1.6% growth recorded in March.

Higher gas prices reduced disposable income for nonessential items like clothing and furniture. Retail spending rose only 0.3% when excluding volatile gasoline sales.

Department store sales fell 3.2%. Furniture store sales declined 2%. Online retail sales increased 1.1%.

The data serves as a key indicator for the consumer discretionary sector ahead of major retail earnings reports.