US Retail Sales Rose 1.7% in March Driven by Gasoline Price Surge

at auto dealerships climbed 0.5%, possibly aided by manufacturer incentives. Furniture store receipts rebounded 2.2%, while electronics and appliance retailers saw a 0.9% increase. Building material and garden equipment stores reported a 0.7% rise. Non-store retailers advanced 1.0%, with gains also at food and beverage stores, general merchandise retailers, and health and personal care stores.

In contrast, sales at food services and drinking places edged up just 0.1%, down from 0.5% in February. Receipts at sporting goods, hobby, musical instrument, and bookstores remained unchanged, as did those at clothing retailers. Core retail sales, excluding automobiles, gasoline, building materials, and food services, increased 0.7% after a 0.6% rise in February.

The strong retail figures aligned with a 0.9% increase in the Consumer Price Index in March, largely due to gasoline prices. This data supported expectations of unchanged Federal Reserve interest rates in the near term. The Atlanta Federal Reserve's GDPNow model tracked a 1.3% growth pace for the first quarter of 2026, following a 0.5% rate in the fourth quarter of 2025.

Economists anticipated that consumer spending growth slowed from the prior quarter's 1.9% annualized rate.

“The tailwind from a blockbuster refund season will fade soon, causing households to cut back on discretionary spending as energy costs remain high." — Nancy Vanden Houten, lead U.S. economist at Oxford Economics (Reuters). Consumer sentiment fell to a record low in April. The government plans to release the advance first-quarter GDP estimate next week. The retail sales report for April is scheduled for on-time release next month, after delays from last year's government shutdown were resolved.”