Retail sales in the U.S. fell much more than expected in April as the coronavirus pandemic forced businesses across the country to close, the Commerce Department reported Friday.
Retail sales plunged 16.4% last month, the largest drop in recorded history, and the latest indication the outbreak is taking its toll on the world's largest economy.
Economists expected April retail sales to decline 12% over March, but they fell more than expected due to fewer people traveling, shopping and dining out.
The steepest drops occurred at clothing and electronics stores and at restaurants.
As the trend toward more online shopping and delivery services continues, retailers large and small are finding it increasingly difficult to remain in business. Department stores Neiman Marcus and J.Crew have filed for bankruptcy and hotels, restaurants and other businesses are in danger.
The dramatic decline in retail spending is a primary reason the U.S. economy is shrinking. Retail purchases are a key area of all consumer spending, which is responsible for about 70% of U.S. economic growth.
