Retail sales increased by 1.4 percent last month following an unrevised 0.2 percent rise in February, with sales amounting to $734.9 billion, according to the bureau’s numbers, which are adjusted for seasonality but not prices. That figure represents a 4.6 percent increase from March 2024.
Economists polled by Reuters had forecast retail sales accelerating by 1.3 percent month over month.
Total sales for the period of January through March 2025 were also up, by 4.1 percent from the same period a year ago, according to the bureau.
Excluding sales at dealers of autos and parts, sales rose by 0.5 percent in March from the previous month, the bureau data showed.
Sales at dealers of autos and parts rose by 5.3 percent, while electronics and appliance retailers saw a 0.8 percent increase in sales, and sporting goods, musical instrument, and book stores enjoyed a 2.4 percent gain.
Elsewhere, sales at grocery stores were up by 0.1 percent, while sales at clothing and accessories stores increased by 0.4 percent. Online retailers also saw a 0.1 percent gain, while food services and beverage locations had a 1.8 percent increase.
Consumers weren’t splashing their hard-earned cash quite as much on furniture and home furnishings stores, however, which saw a 0.7 percent decline, while gasoline stations reported a 2.5 percent decline even as fuel prices dropped.
March’s better-than-expected retail data appears to suggest that consumers sought to avoid the significant price increases for vehicles before President Donald Trump’s 25 percent tariffs on imported vehicles went into effect in early April, according to Kathy Jones, a chief fixed income strategist at Charles Schwab.
“Consumers likely pulled forward car purchases to get ahead of tariffs,” Jones wrote on social media platform X.
Trump’s duties on imported vehicle parts—also part of what his administration says is an effort to bolster domestic auto manufacturing—are set to take effect no later than May 3.
China has responded to the U.S. tariffs with a 125 percent tariff on U.S. goods.
Despite March’s retail figures coming in higher than anticipated, economists still expect that sales will fall over the next few quarters as the tariffs take effect and impact the wider economy.
“With the economy set to cool sharply in the coming months as tariffs take their toll, price-sensitive consumers are poised to become more judicious with their spending and reduce their nonessential purchases,” EY Senior Economist Lydia Boussour wrote in a note on Wednesday.
The Consumer Sentiment Index dropped to 50.8 this month, marking the lowest reading since June 2022 and a steep decline from 57.0 in March, according to the closely watched University of Michigan consumer sentiment survey.
Economists polled by Reuters had forecast the index falling to 54.5.
Expectations for business conditions, personal finances, incomes, inflation, and labor markets all continued to deteriorate in April, the survey found.
