U.S. Retail Sales Stagnate Amid Tariff Indecision

U.S. retail sales growth struggled in April as pre-tariff vehicle purchases dwindled, and spending remained tentative due to ongoing economic uncertainties. The trade war's impact dampened projections, causing cautious financial outlooks and diminished wholesale service prices, creating pressures for businesses and raising concerns of a possible recession.

The growth in U.S. retail sales experienced a marked slowdown in April, attributed to a decline in pre-tariff motor vehicle purchases and general consumer caution amid economic uncertainties. The ongoing trade indecision, notably President Trump's fluctuating tariff policies, has prompted companies like Walmart to withhold financial guidance, reflecting broader economic apprehensions.

Data indicates a 0.1% rise in retail sales last month, following a revised 1.7% surge in March, with softer wholesale service prices hinting at subdued demand. Meanwhile, economists highlight the initial effects of tariffs, warning of reduced business investments and hiring, despite a potential recession seemingly avoided due to tariff cuts.

The Federal Reserve remains vigilant of inflationary pressures from tariffs, with experts predicting a possible interest rate cut later this year. As U.S. economic growth faces headwinds, the ongoing trade narrative with China and its impact on consumption and inflation remains a central theme.

(With inputs from agencies.)