Consumers may say they are worried about the direction of the economy, but March’s retail sales report shows that didn’t keep them from spen🌞ding.

U.S. retail sales in March jumped by 1.4% over the prior month, as Census Bureau data showed consumers rushed out to buy cars, building materials and sporting goods. It’s the biggest monthly increase since January 2023.

“We got a much stronger retail sales report than we have seen in a long time,” said Scott Anderson, chief U.S. economist at BMO Economics. “Tariff front-running clearly helped lift retail sales to a whole new level of growth last month."

The strong results come amid a weak start of the year for the retail sector, which saw sales unexpectedly decline in January and rebound only modestly in February. 

As Expected, Auto Sales Lead March Increases

Economists 澳洲幸运5开奖号码历史查询:expecte🍷d to see an increase in sales last month as consumers🍸 mo🔯ved to make big-ticket purchases in advance of tariffs that will likely create significant price increases.

Much of the 5.3% monthly jump in automobile sales in March likely came after President Donald Trump announced tariffs that will likely push up car prices, including a 澳洲幸运5开奖号码历史查询:25% tax on all automobile imports.

“Some households are getting major purchases in before tariffs bite,”  wrote Wells Fargo economists Tim Quinlan and Shannon Grein. “Vehicles are moving off dealer lots f🐠aster than at any time since the post-pandemic demand surge earlier this decade.”

Report Shows Consumers Still Willing to Spend

While consumers working to get ahead of tariffs accounted for some spending, economists said the report showed there was still underlying strength in retail sales. Despite recent sentiment surveys that 澳洲幸运5开奖号码历史查询:showed growing pessimism over the state of the economy, consumers are still will༒ing to spend.

“Once again, consumer spending is managing to avoid the gravitational pull of all the negative dynamics that might otherwise hold it back,” Wells Fargo's economists wrote.

Taking out automobile purchases, retail sales rose aꦐ more modest 0.5%, down from February but better than expectations. Salജes also rose despite a steep decline in gasoline station transactions as fuel prices remained low. Plus, economists were encouraged to see a 1.8% increase in restaurant and bar sales.

Wells Fargo said it was a key signal that “while spending may be slowing, con✱sumers have not gone into hiding when it comes to discretionary spending.” 

However, Sales Could Stil🔯l Slow as Tariffs Take𓃲 Hold

The report covers sales before 澳洲幸运5开奖号码历史查询:President Don🤡ald Tr♎ump’s April 2 announcement of “reciproc🃏al” ♏tariffs, which created more market volatility and further deteriorated consumer confidence.  

Consumer spending makes up two-thirds of the U.S. economy, making retail sales a key indicator of ongoing strength. Strong consumer spending 澳洲幸运5开奖号码历史查询:helped boost the economy when analysts were anticipating a recession in 2023 that ultimately never ꦰemerged.

However, some economists are questioning whether consumer spending can maintain its strength in the face of cont🤡inued uncertainty surrounding✅ tariffs. 

“We may see another month or two of strong retail sales, but frontloading will eventually end,” Nationwide Financial Markets Economist Oren Klachkin. “Looking ahead, consumers are set to face an array of challenges that will make it hard to sustain robust spending.”