US Retail Sales Jump 1.4% in March as Consumers Seek To Buy Ahead of Trump Tariffs

Retail sales ticked upward by 1.4% in March versus the month prior, the Commerce Department reported, a significant increase from February’s more modest 0.2% gain. Those figures are seasonally adjusted but do not include inflation calculations.

According to CNN, the significant growth in U.S. consumer spending in the retail segment was driven by vehicle purchases and auto parts — when these categories are removed from calculations, growth rests at 0.5%.

And as CNBC pointed out, this advanced estimate of retail sales growth outpaced a Dow Jones estimate of 1.2% improvement. When the aforementioned auto segments were removed from the equation, retail sales performance still beat expectations of 0.3% growth.

The focus on the vehicle and auto parts portion of retail sales is perhaps unsurprising, as economists attributed this surge in sales (of 5.3%) to American car buyers looking to get out ahead of President Donald Trump’s sweeping tariffs.

US Consumers Buying in March as Experts Liken Situation to ‘Giant Clearance Sale’

CNBC underscored that this latest data from the Commerce Department indicated sustained spending from Americans despite the dual headwinds of turbulent and wide-reaching tariff policy announcements, in addition to continuing concerns about the overall strength of the U.S. economy.

“Net, net, these are simply blow out numbers on March retail sales where the rush is on like this is one gigantic clearance sale,” said Chris Rupkey, chief economist at Fwdbonds. “Consumers are expecting sharply higher prices the next year and are clearing the store shelves and picking up bargains while they can.”

A second expert was quoted by NPR as reinforcing the notion that macroeconomic worries may not be shaking other key fundamentals from their moorings.

“The job market is holding tough and incomes are rising, and those are the main factors that drive consumer spending,” stated Robert Frick, an economist at Navy Federal Credit Union.

Details on March Retail Spending Show Sluggish Gas Station and Department Store Sales, but Strong Restaurant Results

A breakdown of the data shows that spending slowed at department stores (down 0.3%), furniture stores (down 0.7%), and gas stations (down 2.5%), while home improvement retailers saw an upward trend in sales figures of 3.3%. Given that the figures presented by the Commerce Department aren’t inflation-adjusted, as CNN noted, the downturn in sales at gas stations could be attributed to lower gas prices.

Bars and restaurants appeared to be bustling with business, as sales for these establishments rose by 1.8% and were up 4.8% against figures from a year ago.

“The increase in bar and restaurant sales shows that consumers were more likely to spend on this discretionary experience,” Ted Rossman, Bankrate senior industry analyst, suggested in an April 16 note.

“We had been seeing waning momentum in this sector as the post-pandemic sugar high wore off and household budgets became constrained by higher prices and higher interest rates, but perhaps things aren’t as dour as the consumer sentiment figures would lead you to believe,” he concluded.