US retail sales increased 0.2% on the month in March, beating the downwardly revised decline of 1.2% the prior month but missing expectations for a 0.6% rise. Excluding autos, the increase was 0.3%, aligning with forecasts.
The sales data, which excludes seasonal factors but not inflation, suggests that spending is on pace with inflation, according to the Labor Department’s previous report. Online spending helped boost the sales figure, with nonstore retailers reporting a 2.4% gain and health and personal care experiencing a 1.7% increase.
However, some sectors underperformed, including bars and restaurants, which reported a 1.5% decline, and gas stations, which were off 1% amid falling pump prices.
Year-over-year sales rose 3.1%, outpacing the 2.8% inflation rate as measured by the consumer price index. The figure is a welcome relief after a steep revision for January’s sales, which had originally been reported as a 0.9% decline.
The mixed data comes amid concerns about economic growth, driven in part by President Donald Trump’s aggressive tariff battle with major trading partners. Economists warn that tariffs could drive up inflation and slow the economy.
Source: https://www.cnbc.com/2025/03/17/retail-sales-increased-0point2percent-in-february-less-than-expected.html