Retail sales March 2025:
Consumer spending exceeded expectations in March, with demand remaining strong despite a decline in sentiment, according to a report from the Commerce Department on Wednesday.
The advanced estimate of retail sales showed a 1.4% increase in March, surpassing the 1.2% estimate from Dow Jones and marking a significant improvement from the 0.2% increase in February. On a year-over-year basis, retail sales rose by 4.6%, while the monthly increase was the largest since January 2023.
Even excluding auto sales, the numbers were better than anticipated, with a 0.5% increase compared to the 0.3% forecast. Economists had expected a rise in auto sales as consumers rushed to make purchases before potential tariffs imposed by President Donald Trump.
Sales at motor vehicle and parts dealers saw a significant surge of 5.3%, indicating strong consumer spending despite concerns about tariffs and economic weakness.
Chris Rupkey, chief economist at Fwdbonds, described the March retail sales figures as “blow out numbers,” suggesting that consumers are stocking up on goods in anticipation of higher prices in the future.
While the release of the retail sales report had little impact on the markets, with stock futures slightly down and Treasury yields slightly up, it contradicted recent sentiment readings that have shown widespread fears of an economic downturn due to tariffs and price spikes.
In addition to the increase in auto sales, other sectors also saw growth in March. Sporting goods, hobby, and music stores reported a 2.4% increase, while building material and garden stores saw a 3.3% rise. Food service and drinking places experienced a 1.8% increase, while gasoline stations saw a 2.5% decline in sales as prices fell during the month.
Overall, the strong retail sales figures in March suggest that consumer spending remains robust despite concerns about tariffs and economic uncertainty.
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