Weekly Domestic Economic Policy Briefing.
April retail sales rose for a third straight month, largely driven by increased spending on gas. San Francisco’s city controller also described the local economy as reaching an inflection point, even as an AI-fueled recovery pushes housing costs higher.
Advance Monthly Retail Trade — April 2026
Nominal retail sales rose 0.5% to $757.1 billion in April, a third consecutive monthly gain and 4.9% above a year ago. Gasoline station spending climbed 2.8% for the month, while motor vehicle sales fell 0.4%, department stores dropped 3.2%, furniture lost 2.0%, and clothing declined 1.5%.
The control group, which excludes autos, gas, building materials, and food services, rose 0.5%—solid, but down from March’s upwardly revised 0.8%.
San Francisco at an inflection point
A report from the San Francisco City Controller’s Office described the city’s economy as being at an “inflection point.” Office vacancy fell to roughly 33% on AI-sector demand, hotel revenues matched 2019 levels, and downtown BART and Muni ridership reached post-pandemic highs.
The recovery is running on an AI-fueled tech boom that is simultaneously pushing housing costs sharply higher. Average asking rent for a one-bedroom reached $3,356 in April, up more than 7% since December, making San Francisco the metro with the second-fastest rent growth in the country. More than a third of San Francisco households are rent-burdened.