U.S. Retail Sales Rise 1.4% in March, Driven by Auto Demand Ahead of Tariffs

U.S. retail sales surged 1.4% in March, marking the strongest monthly increase since January 2023, as consumers accelerated purchases ahead of new tariffs taking effect. Motor vehicle and parts dealers led the gains with a 5.3% monthly jump, driven by buyers anticipating price hikes from impending tariffs, while year-over-year growth in auto sales reached 8.8%. Other sectors such as sporting goods, electronics, and restaurants also saw notable increases, although gasoline stations and department stores experienced declines. Analysts note that the shopping spree was likely fueled by expectations of sharply higher prices, with many households seeking bargains before tariffs raised costs further. Despite strong spending, consumer confidence has taken a hit and retailers are bracing for potential slowdowns as higher tariffs—particularly on goods from China—raise import costs. The retail sales report supports a bullish outlook for consumer discretionary sectors in the near term, though uncertainty over tariffs and inflation expectations may weigh on future demand.