The United States' retail sales saw a jump in March, driven largely by a surge in motor vehicle purchases as consumers moved to buy ahead of President Donald Trump's tariffs.
Retail sales climbed 1.4% in March, surpassing the modest February's 0.2% uptick, according to the Commerce Department. On an annual basis, sales were up 4.6%, with the figures adjusted for seasonal fluctuations.
Motor vehicles and parts dealers saw an increase of 5.3% from last year. Core retail sales, which exclude autos and gas, also rose by 0.8% in March.
Meanwhile, according to Reuters, debit and credit card spending remained concentrated among high-income households, apart from people also increasing their purchases of imported goods. However, low-income households continued to struggle, with discretionary spending showing signs of weakening.
Reacting to the rise in retail sales, chief economist at FWDBONDS, Chris Rupkey, said, "Net, net, these are simply blow out numbers on March retail sales where the rush is on like this is one gigantic clearance sale. Consumers are expecting sharply higher prices the next year and are clearing the store shelves and picking up bargains while they can," CNBC reported.
