Trump & Co. take a trip to China

This Marketplace episode covers President Trump's trip to Beijing with U.S. CEOs, amid mixed U.S. economic data showing consumer resilience but caution, alongside tech stock surges, media shifts, global connectivity risks, and lighter notes on housing trends.

Retail Sales and Inventories Show Price-Driven Gains

April retail sales rose 0.5% from March, holding steady even excluding volatile autos and gas, signaling broad consumer spending. March business inventories increased 0.9%. However, analysts like Jessica Ramirez of Consumer Collective note these gains reflect high and rising prices from recent inflation data, not higher volumes. Consumers are editing purchases—opting for road trips over flights—and 59% are dipping into savings for basics, raising doubts about spending sustainability.

Retailers are matching inventories to current demand cautiously, per Jason Miller of Michigan State, to avoid excess if sales slow. Wholesalers, however, are stocking up, says Zach Rogers of Colorado State, anticipating events like back-to-school and Christmas amid persistent inflation; they prefer buying now over risking higher future costs, especially with soft demand for big-ticket items like appliances.