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 spending.

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🔴官方开奖结果体彩网:expected to see an increase in sales last month as consumers moved to make big-ticket purchases in advance of 𒁃tariffs 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官方开奖结果体彩网: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 faster 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官方开奖结果体彩网:showed growing pessimism over the state of the economy, cꦜonsumers are still willing 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 purc❀hases, retail sales rose a more modest 0.5%, down from February but better than expectations. Sales also rose despite a steep decline in gaso𝔉line station transactions as fuel prices remained low. Plus, economists were encouraged to see a 1.8% increase in restaurant and bar sales.

Wells Fargo sai🅰d it was a key signal that “while spending may be slow🌺ing, consumers have not gone into hiding when it comes to discretionary spending.” 

However, Sales Could S🐓till Slow as Tariffs Take Hold

The report covers sales before 澳洲幸运5官方开奖结果体彩网:President Dona𓂃ld Trump’s April 2 a♎nnouncement of “reciprocal” 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官方开奖结果体彩网:helped boost the economy when analysts were anticipating a recession in 2023 that ultim෴ately never emerged.

However, so🧜me economists are questioning whether consumer spending can maintain its strength in the face of continued 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.”