United States retail sales climbed more than expected in March as consumers remained resilient even amid weakening sentiment and growing tariff concerns.
The Commerce Department reported Wednesday (Thursday AEST) that retail sales increased by 1.4% last month, outpacing market expectations of a 1.3% gain and well above February’s 0.2% rise.
On a year-over-year basis, retail sales were up 4.6%. The March increase was the largest monthly gain since January 2023, based on figures adjusted for seasonality, but not inflation.
A significant portion of the monthly gain came from a 5.3% surge in sales at motor vehicle and parts dealers, amid rising consumers looking to purchase vehicles ahead of expected tariff hikes.
Excluding autos, sales still outperformed expectations, rising 0.5% compared to the projected 0.3% increase.
Other categories also saw notable growth. Sporting goods, hobby, and music stores recorded a 2.4% increase, while building material and garden equipment outlets saw sales rise by 3.3%.
Restaurants and bars posted a 1.8% gain, while gasoline stations saw a 2.5% drop in sales due to falling fuel prices.
The data comes amid heightened volatility in the markets and mixed economic signals, as Trump’s tariff proposals raise the potential of a recession and higher prices.
Just last week, the University of Michigan’s consumer sentiment index recorded its second-lowest reading on record. The same survey also showed that consumers expect inflation to hit its highest one-year level since 1981.
