US retail sales rose 1.7 percent in March on high gas prices
US retail sales rose 1.7% in March as higher gas prices and tax refunds boosted spending. Core sales grew while consumer sentiment hit a record low in April.
Retail activity in the United States grew faster than anticipated in March, fueled by rising fuel costs and a rebound in automotive sales, which were likely supported by manufacturer incentives. According to the Commerce Department’s Census Bureau, retail sales increased by 1.7% last month, outperforming the 1.4% growth projected by economists, whose estimates ranged from 0.4% to 2.0%. This follows a revised 0.7% increase in February, signaling continued consumer activity despite a challenging inflationary environment.
Much of the monthly gain was attributed to the energy sector. Geopolitical tensions involving Israel and Iran have pushed global energy benchmarks, including Brent Crude Oil and West Texas Oil, significantly higher. Data from the U.S. Energy Information Administration showed that retail gasoline prices surged 24.1% in March as oil prices climbed more than 30%.
