Sales at US retailers rebounded sharply in April, breaking a two-month streak of declines and indicating consumers still remain willing to spend, a US Commerce Department report showed today.
Sales rose 0.8 per cent in April, with strength seen across a broad swath of sectors ranging from autos to clothing.
The figures raised questions about how much further the Federal Reserve will go in its recent campaign of interest-rate cuts aimed at reviving the sluggish US economy.
The Fed's rate-setting panel is set to meet on Tuesday and is widely expected to cut rates for a fifth time this year. But with resilience in consumer spending, which makes up two thirds of economic activity, the case for further aggressive moves through the rest of the year may be seen as weaker.