U.S. consumers spent far more at American retail stores, gas stations, and online than economists had forecast, showing no signs that the household sector has shied away from everyday or major purchases due to higher gas prices or concerns over the conflict with Iran.
Retail sales rose 1.7 percent in March, an acceleration from the previous monthβs 0.7 percent gain, data from the Commerce Departmentβs Census Bureau showed Tuesday. Economists had forecast a 1.4 percent increase. Compared with a year ago, sales are up four percent.
The rising price of fuel was seen as likely to drive up sales at gas stations while depressing sales elsewhere. Gas station sales surged 15.5 percent compared with February. The price of gasoline rose 21.2 percent, the Bureau of Labor Statistics said in a report released on April 10.
But even outside of gas stations, there was no sign of a slowdown in spending. Excluding gas stations, sales rose 0.6 percent, beating forecasts for a 0.2 percent gain. Compared with a year ago, sales excluding gas stations are up 2.9 percent.
This indicates consumer spending remained solid in March, rising despite higher energy prices and uncertainty created by the war with Iran. It is likely that the larger-than-usual tax refunds from President Trumpβs tax cuts last year, as well as lower withholding due to those cuts, are helping to support consumer spending
U.S. consumers spent far more at American retail stores, gas stations, and online than economists had forecast, showing no signs that the household sector has shied away from everyday or major purchases due to higher gas prices or concerns over the conflict with Iran.
Retail sales rose 1.7 percent in March, an acceleration from the previous monthβs 0.7 percent gain, data from the Commerce Departmentβs Census Bureau showed Tuesday. Economists had forecast a 1.4 percent increase. Compared with a year ago, sales are up four percent.
The rising price of fuel was seen as likely to drive up sales at gas stations while depressing sales elsewhere. Gas station sales surged 15.5 percent compared with February. The price of gasoline rose 21.2 percent, the Bureau of Labor Statistics said in a report released on April 10.
But even outside of gas stations, there was no sign of a slowdown in spending. Excluding gas stations, sales rose 0.6 percent, beating forecasts for a 0.2 percent gain. Compared with a year ago, sales excluding gas stations are up 2.9 percent.
This indicates consumer spending remained solid in March, rising despite higher energy prices and uncertainty created by the war with Iran. It is likely that the larger-than-usual tax refunds from President Trumpβs tax cuts last year, as well as lower withholding due to those cuts, are helping to support consumer spending