The Week in Review: April 27, 2026
Retail Sales Surge on Higher Gasoline Prices
It is no surprise that retail sales surged last month—but not for the reason investors typically want to see.
The U.S. Census Bureau reported a 1.7% increase in March retail sales, driven largely by a 15.5% jump at gasoline stations. The overall strength reflects higher prices at the pump, not strong underlying consumer demand.
Retail sales are goods purchased online or at the store.
Put plainly, if you drive a gasoline-powered vehicle, higher gasoline prices translate into higher spending for gasoline, and that was reflected in the March data.
But there was good news in the data, too. The higher price of gasoline didn’t eat into other categories. In other words, the shock of higher gasoline prices didn’t force most folks to cut back in other areas.
You see, if spending at gas stations is excluded, spending rose a healthy 0.6% in March. And that’s not a big surprise either.
Retail sales spending is ‘lumpy’ and can be affected by everything from weather to statistical quirks in the data.
That said, a spike in gasoline prices wouldn’t be expected to immediately force a reallocation in the family budget.
Initially, most folks simply dip into their savings or add to their credit card balances, and spending holds up in other categories.
But as onerous as higher gas prices might be, if prices were to hold at today’s levels over an extended period of time, would they dampen economic growth as consumers are forced to choose between gasoline and other items or services?
As the graphic illustrates, family budgets have weathered worse. In part, autos are more efficient today, and more people are driving EVs.
Paying high prices for gasoline is never welcome. Still, higher gas prices alone, viewed through the narrow lens that is laser-focused on the overall economic impact, don’t appear to be sufficient to destabilize the economy, particularly given the consumers’ ability to absorb higher gasoline costs in the past.
Market Summary
Two FOR THE ROAD
Americans will collectively burn nearly 6.93 billion hours filing their federal tax returns this season. That’s $477 billion all-in, once you add up lost productivity and out-of-pocket costs for software and tax pros, which is the equivalent of more than 3 million full-time workers doing nothing but taxes for an entire year. - National Taxpayers Union Foundation, April 13, 2026
The average federal tax refund this filing season climbed to $3,571, an 11% jump from last year. More than 53 million filers claimed at least one new deduction from the 2025 tax bill, including tip income, overtime, auto loan interest, or senior-specific, for an average cut of more than $800. - CNBC, April 17, 2026
I hope you have a wonderful week!
Warmest Regards,
Bill Stordahl, CFP®
Managing Director
Stordahl Capital Management
A Weekly Perspective on Planning and Markets
Each week, we share The Week in Review — a short collection of articles on
financial planning and wealth management, along with a brief overview for context.
One email per week. No promotions, no sales – just clarity.