April real retail sales were flat M-o-M and Y-o-Y, extending a trend of mildly slowing sales. After jumping 15% due to Covid, retail sales remained strong through 1/23 but have weakened slightly as post-Covid services spending has, unsurprisingly, risen. Additionally, excess Covid savings are exhausted, wage growth is cooling, and the credit card boom is over. Despite slowing, retail sales remain slightly above their pre-Covid trend. The weakening is unsurprising.

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