What: The value of retail purchases rose 0.4% and sales increased 0.6% in April.

Why it is important: The results suggest that consumer spending is holding up despite inflation and high borrowing costs

While the overall figure was below economists’ estimates, the advance in sales was higher than expected.

Seven out of 13 retail categories saw an increase, including general merchandise outlets and online merchants.

Economists at Wells Fargo stated that the sturdy job market and steady income gains are supporting consumption. However, American consumers are starting to spend more on services and there are signs that consumers are overextending themselves.

Sporting goods and hobby stores, furniture retailers, as well as appliance and electronic outlets saw a decrease in sales.

Retailers are expected to see a tough year ahead as the report suggests that consumers are starting to become more discerning with their spending as the economy slows towards a recession.

US retail sales increase in sign of steady consumer spending