Americans increased their spending pace in March at a better-than-expected pace the previous month, , underscoring how shoppers remain resilient despite inflationary pressures and other economic challenges. Retail sales rose 0.7% last month after being up a revised 0.9% in February, according to the Commerce Department’s report on Monday. Sales fell a revised 1.1% in January, dragged down in part by inclement weather. Excluding gas prices, which have been rising, retail sales were still up a solid at 0.6%.
Quick Read
- In March, American consumers increased their spending more than expected, demonstrating resilience despite inflation and economic challenges, with retail sales rising by 0.7% following a 0.9% increase in February.
- Despite a decline in January sales by 1.1% due to poor weather, retail sales excluding gas were robust, increasing by 0.6%.
- Specific sectors showed varied performance; general merchandise stores experienced a 1.1% sales increase, online sales jumped 2.7%, and restaurant business grew by 0.4%. However, electronics and appliance stores saw sales decline, affected by a struggling home market.
- The strong job market contributed to consumer spending resilience, with employers adding 303,000 jobs in March, significantly surpassing the anticipated 200,000 jobs and indicating the economy’s capacity to handle high interest rates set by the Federal Reserve.
- Inflation persists as a concern, with core prices (excluding food and energy) rising 0.4% from February to March and year-over-year core prices up by 3.8%, suggesting ongoing economic pressure which may delay anticipated cuts to interest rates by the Federal Reserve.
- Overall consumer prices also rose by 0.4% from February to March, with an annual increase of 3.5%, reflecting continued inflationary pressures.
The Associated Press has the story:
U.S. Retail sales up a strong 0.7% in March from February
Newslooks- NEW YORK (AP) —
Americans increased their spending pace in March at a better-than-expected pace the previous month, , underscoring how shoppers remain resilient despite inflationary pressures and other economic challenges.
Retail sales rose 0.7% last month after being up a revised 0.9% in February, according to the Commerce Department’s report on Monday. Sales fell a revised 1.1% in January, dragged down in part by inclement weather. Excluding gas prices, which have been rising, retail sales were still up a solid at 0.6%.
Sales at general merchandise stores rose 1.1%, while online sales rose 2.7%. Business at restaurants rose 0.4%. Electronics and appliance stores posted a decline, hurt by a still challenged home market.
A strong jobs market and rising wages have fueled household spending, which also has become choppy in the face of rising credit costs and higher prices.
America’s employers delivered another strong report in March, adding 303,000 workers to their payrolls and fueling hopes that the economy can overcome inflation without succumbing to a recession in the face of high interest rates.
Last month’s job growth was up from a revised 270,000 in February and far exceeded the 200,000 jobs that economists had predicted. By any measure, it amounted to a major burst of hiring, and it underscored the economy’s ability to withstand the pressure of high borrowing costs resulting from the Federal Reserve’s interest rate hikes. With the nation’s consumers continuing to spend, many employers have kept hiring to meet steady customer demand.
However, inflation has remained stubborn, lifted last month by by higher prices for gasoline, rents, auto insurance and other items, new data showed last week. That will likely delay a cut to interest rates that many had anticipated at the next meeting of the U.S. Federal Reserve’s monetary policy-making arm in a couple of weeks.
Prices outside the volatile food and energy categories rose 0.4% from February to March, the same accelerated pace as in the previous month. Measured from a year earlier, these core prices are up 3.8%, unchanged from the year-over-year rise in February. The Fed closely tracks core prices because they tend to provide a good barometer of where inflation is headed.
Overall consumer prices rose 0.4% from February to March, the same as in the previous month. Compared with a year ago, prices rose 3.5%, up from a year-over-year figure of 3.2% in February.
