American consumers felt comfortable spending a bit more in April from March, as easing inflation returned some purchasing power to shoppers.
The report published by the US Commerce Department revealed that higher demand for new cars also helped results.
Retail sales, a measure of spending at stores, online and in restaurants, increased 0.4% in April to $686.1 billion from March when it was down 0.7%. The news sent the US Dollar Index slightly higher.
It marked the first increase since January when unusually warm weather and a big jump in Social Security benefits likely spurred more spending.
Sales at car and auto parts dealers rose 0.4%, while business at gas stations fell 0.8%. Excluding car dealers and gas stations, retail sales rose 0.6%.
Meanwhile, spending increased 1.2% at online retailers and ticked up 0.6% at restaurants and bars.
However, consumers were more tight-fisted while spending at department stores, electronic stores and home furnishings stores which all saw monthly declines.
The data published on Tuesday adds to a mixed picture of economic activity.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive