The latest report from the Commerce Department’s Census Bureau shows that U.S. retail sales grew faster than anticipated in March, driven by higher gas prices due to the Iran conflict, while tax refunds helped sustain spending in other areas.
Retail sales increased 1.7% last month following an upward revision of a 0.7% gain in February.
Retail sales excluding autos, gasoline, building materials, and food services rose by 0.7% in March, after an upwardly revised 0.6% increase in February.
The conflict between the U.S., Israel, and Iran has caused global oil prices to increase by over 30%. According to the U.S. Energy Information Administration, retail gasoline prices surged by 24.1% in March.
Concerns remain that high fuel prices might reduce consumer spending in other areas and lead to lower tax refunds, which are currently below the U.S. Treasury Department’s projections.
By CEO NA Editorial Staff
