Analysts Forecast Temporary Slowdown in Consumer Spending Due to Gas Prices

[mandy]

Consumers, spurred by a late Easter and warmer than usual weather, pushed retail sales up by a solid amount in April although soaring gasoline prices kept the increase below expectations. The Commerce Department reported that retail sales increased 0.5 percent in April following a 0.6 percent advance in March.

"With fuel costs up more than 50 cents per gallon since early March, the odds would seem to favor a slowdown, albeit temporary, in consumer spending over the next month or two," said Stephen Stanley, chief economist at RBS Greenwich Capital....

Sales at furniture stores and hardware stores declined in April in what could be the early impacts of declining home sales, which are slowing this year as mortgage rates climb...

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