US retail sales were unchanged in April as households reduced purchases of automobiles and other extensive items, the government reported Wednesday, indicating the economy was struggling to rebound strongly after nearly stalling in the first quarter. The Commerce Department said retail sales were flat last month after rising 1.1 percent in March. Sales have risen only 0.9 percent over the past 12 months, with steady hiring not yet sparking higher wages. Americans bought fewer vehicles, furniture, building supplies, gasoline, food, and general merchandise in March. Offsetting those declines were gains in spending at restaurants, clothing stores, health-related stores, and online retailers. Many economists say retail sales should improve after strong job growth fuels acceleration in wages. But the addition of 3.1 million jobs over the previous 12 months has done little to raise wages at a pace significantly higher than the inflation rate. Wages have risen at a relatively modest 2.2 percent pace over the past 12 months, barely outpacing inflation, the government reported last week. Also, gasoline prices are beginning to rise, which means households have less money to spend on other things. The average cost of gasoline has risen to $2.66 a gallon (3.8 liters) from $2.39 a month ago. Still, retail gasoline prices remain $1 below costs a year ago. Economists closely watch the retail sales report because it provides the first indication each month of American household spending. Retail sales account for about one-third of consumer spending, which, in turn, accounts for 70 percent of U.S. economic activity.
