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U.S. March Retail Sales Jump 1.7% on Higher Gasoline Prices

Higher pump prices linked to the Iran conflict inflated the headline more than underlying demand.

Overview

  • Retail sales, which the Census Bureau reported Monday, rose 1.7% in March after a revised 0.7% gain in February.
  • Service-station receipts strengthened as EIA data showed retail gasoline prices jumped 24.1% in March after global oil rose more than 30% during the flare-up with Iran.
  • Core retail sales, a proxy for consumer spending in GDP that strips out autos, gas, building materials and restaurants, rose 0.7%.
  • Auto dealers booked higher sales, likely helped by manufacturer incentives, and larger IRS refunds also put extra cash in shoppers' pockets.
  • High fuel costs are squeezing budgets, with Stanford researchers estimating an $857 jump in annual gasoline outlays and the Atlanta Fed tracking just 1.3% first-quarter growth as consumer sentiment hit a record low in April.