Retail spending rose 1.7% in March from February as a surge in gas prices, tied to the Iran-related conflict, drew money toward fuel. Excluding gas, March activity was a modest 0.6%, with government tax refunds and warm weather supporting some gains. Gas stations led the gain with about a 15.5% jump, while department stores and furniture stores also posted solid increases; online and restaurant sales were more muted. The data provides an early view of consumer behavior amid geopolitical tensions, though it omits travel and lodging components. The Iran war, which began Feb. 28 and affected global oil flows, frames the context for these spending patterns.
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March retail sales rose 1.7% from February, driven by a spike in gas prices linked to the conflict in Iran, with the initial read highlighting the war's impact on spending.
Gas stations saw the sharpest rise, up 15.5%, illustrating how energy prices dominated consumer outlays during the month.
February's figure was revised to a 0.7% increase, establishing March as the stronger month within the reported period.
Excluding gasoline, the March gain was 0.6%, supported in part by government tax refunds and milder weather conditions.
Department stores experienced a 4.2% rise, and furniture stores were up 2.2%, indicating broad shopping strength beyond energy-related purchases.
Online retailers posted a 1% gain, while the sole services category—restaurants—rose 0.1%, showing a relatively tepid services sector amid energy-driven spending shifts.
The report notes that the snapshot is partial, excluding travel and hotel activity which could alter the overall consumption picture.