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U.S. retail sales rose in March, as consumers flocked to buy goods ahead of the Trump administration’s latest tariffs going into effect.
According to the U.S. Census Bureau, retail sales increased by 1.4 percent on a monthly basis in March, up from February’s 0.2 percent increase and slightly ahead of analyst forecasts of 1.3 percent.
Core retail sales excluding autos and gas also rose by 0.8 percent, flat with February’s upwardly revised increase.
Why It Matters
Retail sales constitute a significant portion of overall U.S. spending—around one-third according to some estimates—and are therefore taken as a key indicator of consumer confidence and the overall health of the U.S. economy.
Old Navy and Gap retail stores are seen as people walk through Times Square in New York City on April 9, 2025. Old Navy and Gap retail stores are seen as people walk through Times Square in New York City on April 9, 2025. Angela Weiss/AFP via Getty Images
Wednesday’s data could offer some relief to a sector that has struggled with multiple headwinds since 2020, including reduced foot traffic and the accelerated shift to e-commerce driven by the COVID-19 pandemic. However, ahead of the release, analysts speculated that a sharp uptick in retail sales could reflect consumers rushing to make purchases in anticipation of upcoming price hikes linked to the administration’s trade policies.
What To Know
March’s 1.4 percent rise represents the strongest monthly growth since January 2023, when retail sales jumped by 4.1 percent. The report revealed that motor vehicles & parts led the monthly gains with a 5.3 percent increase. Notable growth was also seen in building materials & garden equipment (3.3 percent), sporting goods, hobby, musical instrument, & book stores (2.4 percent), as well as food services & drinking places (1.8 percent).
The March results cover spending that occurred after President Donald Trump announced tariffs on China, Canada, and Mexico in February, but prior to his
US Retail Sales Rise As Shoppers Brace for Trump Tariff Impact
