US retail sales in April 2016 recorded its largest increase in more than an year. The Americans buy more cars and other products, according to the report, which suggest that the economy is gaining momentum after nearly stagnated in the first quarter. The US Commerce Department announced that retail sales grow by 1.3% MoM in April. Also the March data was revised upward to decline of 0.3%, instead of originally reported 0.4%. When excluding cars, gasoline, building materials and services in the field of food sector, the increase in April was 0.9%, but again remaining above the economists forecasts.
The steady trend is a signal that economic growth probably accelerated after the first quarter increase in GDP was 0.5%. In the last three months of 2015 growth was 1.4%.
Retail sales reporting weak growth in part because labor market does not generate enough strong wage growth. In addition, the number of economists saved money from cheaper fuel in the last year and a half have been absorbed by higher costs for rent and healthcare.
In April, car sales increased by 3.2%, which was the biggest increase since March 2015. Previous month reported a decrease of 3.2%.
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