April 16, 2025
The strong rebound in retail sales in March was boosted by a surge in auto sales and a more general front-loading of consumer spending ahead of tariffs.
Oxford Economics deputy chief U.S. economist Michael Pearce, commenting on the March retail sales report released on Wednesday.
Why It Matters: The March retail sales report offers key data on consumer spending. Retail sales increased by 1.4% from February to March, according to the report, which is the largest monthly increase since January 2023. Economist had predicted an increase of 1.2%.
- Spending increases were seen mostly in cars and car parts, which rose to 5.3% for the month of March.
- Sales also increased at home improvement stores and bars/restaurants.
- Sales decreased at furniture stores, gas stations and department stores.
More Context: Consumer spending represented around 70% of the economy by the end of 2024. It’s unclear what this report could mean for interest rates set by the Federal Reserve, which meets next in May. Chief International Economist at ING James Knightley said, “In the near term, we could have some really strong consumer spending numbers, but that just makes things a little bit tricky for the Fed.” (CNN)
Read More: Retail sales increased 1.4% in March, greater than expected (CNBC)
Photo Credit: Charlesdeluvio; Unsplash
by Kelly Dean, Based in Kentucky.
