US retail sales stabilize as the impact of government subsidy “checks” wanes

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Retail sales in the United States were unexpectedly flat in April as support eased from stimulus payments, but the coming months are likely to see an acceleration as savings reach unprecedented levels and economic activity resumes.

The US Commerce Department said on Friday, that the reading of retail sales that did not change last month came after a 10.7% rise in March, an upwardly revised reading from the previous reading, which indicated a growth of 9.7%.

Economists polled by “Reuters” had expected a 1% rise in retail sales.

Several eligible families received an additional $ 1,400 payments in March, which came as part of a $ 1.9 trillion White House COVID-19-related aid package that was approved early that month.

Consumer spending, which accounts for more than two-thirds of US economic activity, grew at an annual rate of 10.7% in the first quarter of the year, adding 7 percentage points to the economy’s annual growth rate of 6.4%.







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