U.S. retail sales endured a second straight month of record declines in April as the novel coronavirus pandemic kept Americans at home, putting the economy on track for its biggest contraction in the second quarter since the Great Depression.
The Commerce Department said on Friday retail sales plunged 16.4% last month, the biggest decline since the government started tracking the series in 1992. Data for March was revised to show receipts at retailers falling 8.3% instead of dropping 8.7% as previously reported.
Economists polled by Reuters had forecast retail sales plummeting 12.0% in April.
Excluding automobiles, gasoline, building materials and food services, retail sales tumbled 15.3% last month after a surprise 3.1% jump in March. These so-called core retail sales correspond most closely with the consumer spending component of the gross domestic product report.
The collapse in retail sales added to a historic 20.5 million job losses last month in underscoring the deepening economic slump that analysts warn could take years to recover from. Federal Reserve Chair Jerome Powell on Wednesday warned of an “extended period” of weak growth and stagnant incomes.
