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 collapse in retail sales reported by the Commerce Department on Friday added to the historic loss of 20.5 million jobs 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.
Retail sales plunged 16.4 percent last month, the biggest decline since the government started tracking the series in 1992, with only online merchants reporting an increase in receipts. Data for March was revised to show receipts at retailers falling 8.3 percent instead of dropping 8.7 percent as previously reported.
Economists polled by Reuters had forecast retail sales would plummet 12 percent in April. Retail sales crashed 21.6 percent on a year-over-year basis in April.
Lucia Mutikani wrote this report for Reuters News Service.
