U.S. shoppers, perhaps trying to load up on big-ticket items before the effects of President Donald Trump’s new tariffs kick in, stepped up their shopping last month.
But, according to a report from The Associated Press, economic analysts said that, rather than being a sign of strength, the data underscored the extreme economic uncertainty that shoppers face and how they want to get ahead of higher prices.
According to statistics released by the Commerce Department, retail sales rose 1.4% in March, after a 0.2% increase in February. Retail sales fell 1.2% in January, hurt in part by cold weather that kept more Americans indoors, affecting sales at car dealers and most other stores.
Excluding sales at motor vehicle and parts dealers, sales rose 0.5% in March, compared with the previous month, statistics showed.
Sales at motor vehicles and parts dealers rose 5.3%, and sales also rose at electronics stores, sporting goods retailers and clothing and accessories stores. Grocery stores and online retailers both saw a 0.1% increase. Restaurants had a 1.8% increase. However, furniture and home furnishings stores posted a decline.
“These are simply blow out numbers on March retail sales where the rush is on like this is one gigantic clearance sale,” said Christopher S. Rupkey, chief economist at FWDBonds LLC in a published note, according to the AP. “Consumers are expecting sharply higher prices the next year and are clearing the store shelves and picking up bargains while they can.”
Economists expect that sales will likely fall over the next few quarters.
“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 Wednesday, according to the AP report.
