Rising Gas Prices Cutting Into Retail Sales

USA Today reports:

For the March-April months combined, retailers delivered a 5.25% increase, strongest spring since 1999′s 6.2% rise.

Michael Niemira, chief economist at the ICSC, says, however, he saw some moderation in spending, based on his study of month-to-month seasonally adjusted figures. By his calculation, from March to April, revenue at stores open at least a year rose 0.3%, compared with a 2.2% increase from February to March.

“This says we need to be cautious. This signals that some of the worry about rising gas prices is indeed impacting sales,” he said.

…Pump prices have risen more than 90 cents a gallon since the beginning of the year.

Prices are also rising for food. Clothing stores are expected to pass higher prices on to shoppers this summer; cotton shirts and underwear are already more expensive.