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WASHINGTON : US retail sales declined 0.2 percent in April, largely as American consumers put a brake on new vehicle purchases, a government report showed Tuesday.
Core retail sales, which strip out auto sales, increased by 0.5 percent, the Commerce Department said in a monthly survey.
The 0.2 percent headline decline had been predicted by most economists, but the rise in sales excluding autos was stronger than expected as most analysts had anticipated core sales would rise 0.2 percent.
The increase in sales excluding autos was the strongest since January.
The drop in vehicles sales, which dragged down overall sales, suggests Americans are feeling the impact of tougher economic times and rocketing gasoline prices.
Sales of new vehicles in the United States plummeted to their lowest level since 1992 last month, according to sales reports from the biggest auto manufacturers.
Americans shunned buying gasoline-guzzling sport utility vehicles last month, and opted to buy smaller cars with better fuel efficiency.
The latest retail sales snapshot revealed a more subdued picture than March and suggests surging gasoline prices, housing and credit woes are continuing to squeeze Americans' finances.
Retail sales had rebounded 0.2 percent in March, but the government revised core March sales higher to 0.4 percent compared with an initial estimate showing a gain of just 0.1 percent.
- AFP /ls
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