US retail sales flat, inflation fears on the rise
The US economic recovery showed signs of hitting some turbulence as shoppers curbed their spending last month and manufacturing slowed due to supply bottlenecks.
After a rush of shopping in March, US retail sales were flat in April, and while auto sales rose, vehicle production fell amid a global semiconductor supply crunch, according to government data released Friday.
Meanwhile, a private survey showed consumer confidence fell due to concerns about rising prices as the reopening of the world's largest economy drives speculation of a sustained rise in inflation.
Officials in President Joe Biden's administration have tried to downplay the fears of a slowing recovery, but acknowledged there could be some bumpy months ahead.
"This was an unprecedented economic downturn... where we completely powered down the economy," said Cecilia Rouse, chair of Biden's Council of Economic Advisers.
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