US retail sales rose to higher-than-expected levels in March as consumers stocked up on goods prior to the implementation of tariffs.
Revenue grew 1.4% — adjusted for seasonal variation — from the previous month to $734.9 billion, according to data the US Census Bureau released Wednesday. That rise follows a much smaller 0.2% increase to $724.5 billion in February.
However, the National Retail Federation (NRF), which monitors spending using credit- and debit-card purchase data rather than survey-based numbers, noted that March sales inched up 0.6%.
“Retail sales strengthened in March, supported by continued solid growth in income, lower energy costs and bigger-than-usual tax refunds that all helped support household budgets,” said NRF chief economist Jack Kleinhenz. “However, there is no question that the consumer is not feeling great given the confusion of policy announcements from Washington. On-again, off-again rising tariffs and resulting turmoil in the stock market and world economy are clearly impacting consumer concerns about higher prices and future consumer spending growth.”
According to a survey the NRF conducted in March, 46% of consumers were stocking up on appliances, clothing, and other items because they were worried that tariffs would bring higher prices, the federation noted.
Sales were up 4.6% from the previous year, versus a 3.5% rise in February, according to the Census Bureau.
All nine of the categories the NRF tracks saw year-on-year gains in March. The clothing and accessories segment — which includes jewelry — rose 0.8% compared to February and 2.4% versus the same period a year ago. Online sales grew 0.8% month on month and 28% year on year. Electronics and appliances, health and personal care, and building and garden supply stores were the only categories to see monthly decreases.
Image: A busy shopping mall. (Shutterstock)
