Shoppers tempered their spending in April as higher gas prices, fuelled by the US-Israel war on Iran, meant less money left over for some non-essentials like clothing and furniture. But they're still buying, thanks to more generous government tax refunds.

Still, economists worry that spending will fall off more dramatically in the coming months as benefits from the refunds dissipate, and shoppers continue to grapple with the cumulative impact of rising gas prices at the pump.

Retail sales rose 0.5 per cent in April, a slowdown from the revised growth level of 1.6 per cent in March, according to Commerce Department data released on Thursday. March marked the largest one-month increase in retail spending in more than three years, largely because gas prices spiked higher rapidly.