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| - After a rush of shopping in March, US consumers took a break in April and total retail sales were flat, according to government data released Friday. Meanwhile, other data showed the economic recovery may be hitting some turbulence amid supply bottlenecks and rising worries about inflation. The volume of retail sales held steady at just under $620 billion, as declines in clothing, sporting goods, furniture, gasoline and even the roaring e-commerce market were offset by gains in cars, electronics, food and health care, the Commerce Department's advance report said. The cooling off came after a 10.7 percent jump in March compared to February, and was far worse than the consensus among economists, which projected a modest increase. Meanwhile, a University of Michigan survey showed consumer sentiment retreated in May amid increasing concerns about inflation. But while the sentiment index fell more than six points to 82.8, the survey showed "consumer spending will still advance despite higher prices due to pent-up demand and record saving balances." Fears of an inflationary spike have been gaining traction, fueled by recent data showing prices surging as the economy reopens following the Covid-19 shutdowns, including the 4.2 percent annual jump in the Consumer Price Index in April reported earlier this week. Economists say the spikes reflect a rebound from the price collapses a year ago at the start of the pandemic, and also are pushed by supply bottlenecks as industries struggle to return to normal. But the Federal Reserve's repeated assurances that the issue are transitory have not eased the concerns. Total retail sales in April were more than 51 percent higher than the same month last year, when the Covid-19 pandemic first forced the near-shutdown of the world's largest economy. After rushing out to spend another round of government stimulus payments in March, consumers seemed to take a pause last month. Ian Shepherdson of Pantheon Macroeconomics called the result "a modest post-stimulus hangover after the March binge." The National Retail Federation (NRF) stressed that while consumers tapped the brakes last month, sales remain strong and household finances are healthy. "Consumers are demonstrating that when they feel safe, they are both willing and able to spend and are driving the economy forward," NRF President Matthew Shay said in a statement. He predicted "the economic recovery will likely continue to gain steam as we head into the summer months." Motor vehicle and parts sales were up just 2.9 percent in the month, and excluding the auto sector, total retail sales actually fell 0.8 percent, according to the report. Gardening and home improvement sales were one category that held steady throughout the pandemic lockdowns, but dipped 0.1 percent last month. With more Americans vaccinated against Covid-19 and authorities relaxing mask and social distancing restrictions, sales at restaurants and bars rose 3.0 percent, the report said. However, online sales slipped 0.3 percent -- a rare decline -- but are up 29 percent from a year ago. Meanwhile, the Federal Reserve said "supply chain difficulties" held US industrial output to a 0.7 percent gain last month. Automakers have been forced to slow or shut down plants amid a worldwide shortage of semiconductors, and the Fed data showed production of motor vehicles and parts fell 4.3 percent. hs/dw
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