New data released on Thursday indicates that consumers sped up purchases in April, hoping to stay ahead of potential tariffs.
The CNBC/NRF Retail Monitor reported that retail sales were 0.72% higher month over month and 6.76% year over year in April. Sales of digital products saw a huge increase, rising 27.67% year over year.
It was an especially strong month for electronics and appliances, which were 10.5% higher this April compared to the previous April. Stores that specialize in hobbies, such as sporting goods and music, reported a 9.19% increase in sales.
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“Spending rose again in April, driven largely by consumers continuing to pull purchases forward to stay ahead of tariffs that will inevitably lead to higher prices,” NRF President and CEO Matthew Shay said. “Despite declines in confidence caused by the economic uncertainty that has come with tariffs, consumer fundamentals remain intact, supported by low unemployment, slower-but-steady income growth, and solid household finances. Consumers maintain their ability to spend and have strong reasons to spend now before tariffs can drive up prices or cause shortages on store shelves.”
Many of President Donald Trump's tariffs remain in limbo. There are currently universal 10% tariffs on most imported items, with a 25% duty on steel and aluminum products and 145% tariffs on items from China. Tariffs are charged to the company importing the product, and many companies have stated those costs are passed on to consumers.
President Trump has put a 90-day pause on higher tariffs on dozens of nations to facilitate negotiations.
