US Retail Sales Rose 0.6% in March

US Retail Sales Rose 0.6% in March

Year-over-year core sales increased 4.5%. Clothing stores suffered a 0.8 percent drop in sales in March, but were likewise up for the year, by 1.8 percent. On a year-on-year basis, building material sales rose a sound 5.3 percent year-on-year, and the fall in March probably reflects a give back after post-hurricane rebuilding activity in earlier months, noted TD Economics in a research report.

Excluding automobiles, gasoline, building materials and food services, retail sales rose 0.4 percent last month after being unchanged in February. Control-group sales rose at a 1 percent annualized rate over the last three months, compared with 7.6 percent in the three months through December.

Retail trade sales increased 0.6% from February and 4.7% from a year ago.

A solid March result helps in setting the second quarter up for a healthy rebound with consumer spending expected to expand by around 3 percent, stated TD Economics.

"Overall, consumer spending has been disappointing in 1Q18, which is partially weather-related, but today's report suggests the slowdown was transitory", said James Knightley, Chief International Economist at ING.

Retail spending in the world's largest economy gained 0.6 per cent for the month, rising to US$494.6 billion, overshooting economists' expectations and marking the biggest gain since November. For the year, that category enjoyed an increase of 0.8 percent in sales.

Spending at US retailers rose broadly in March, rebounding after a weak start this year for consumer spending despite a solid labor market and growing worker paychecks. Also up for the month, each by less than 1 percent, were furniture stores, electronics stores. grocery stores, restaurants and of course non-store (Internet) sales, which were up 0.8 percent.

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