April retail sales were weaker than expected as high gasoline prices discouraged shoppers, government data showed on Thursday, supporting views the Federal Reserve may pause its campaign to raise interest rates in June.
In addition, jobless claims were higher than forecast last week, but the numbers were distorted by a partial government shutdown in Puerto Rico, a US territory.
Commerce Department data showed sales at US retail stores rose a smaller-than-expected 0.5 percent in April and were spared an even weaker performance by strong gasoline sales.
Gasoline station sales jumped 4.6 percent, their largest increase since September 2005, as higher energy prices inflated the cost at the pump.
But retail sales excluding gasoline edged up just 0.1 percent after rising 0.7 percent in March.
"If you are looking for the Fed to hold, these data are supportive of that," said Keith Hembre, chief economist at FAF Advisors at Minneapolis, Minnesota.
The Fed on Wednesday lifted interest rates by a quarter percentage point to 5 percent but left the door open to a pause in its nearly two-year rate-hike campaign.
Consumer spending accounts for two-thirds of US economic activity and analysts worry higher energy prices, which act like a tax on households, are hitting consumption.
Retail sales excluding cars and parts increased 0.7 percent in April after a revised 0.5 percent rise in March. This was previously reported as a 0.4 percent gain.
Wall Street analysts polled by Reuters had forecast a 0.7 percent advance in April retail sales after an unrevised 0.6 percent gain in March, and had expected sales ex-autos to advance 0.9 percent.
Sales of new cars and parts fell 0.4 percent last month and March's increase was revised lower to show a 1.0 percent rise from 1.6 percent previously reported.
The Commerce Department data separately showed that March business inventories rose a larger-than-expected 0.7 percent in March as automotive and building material stocks climbed.
Wall Street had forecast a smaller 0.5 percent rise in inventories at retailers, wholesalers and manufacturers. February stocks were revised up to show a 0.1 percent gain rather than the flat reading initially reported.
Business sales kept pace with inventories, rising 0.7 percent in March after an unrevised 0.6 percent decline in February. This kept the inventories-to-sales ratio, a measure of how long it would take to deplete stocks at the current sales pace, unchanged at 1.26 months, just above the record low of 1.25 months in January.
Labour Department data showed new claims for US jobless aid fell 1,000 last week, but were higher than expected due to a partial government shutdown in Puerto Rico that added about 20,000 claims.
First-time claims for state unemployment insurance benefits dipped to 324,000 last week from an upwardly revised 325,000 claims the previous week.
Excluding claims related to the government shutdown in Puerto Rico, initial claims would have been closer to 300,000, a Labour Department analyst said. Government layoffs in Puerto Rico started May 1 because of a funding crisis.