Retail sales were up in March ahead of anticipated tariffs

Buyers went on a shopping spree in March ahead of President Donald Trump’s promised new tariffs.

Retail sales last month increased 1.4% over February and 4.6% from March 2024, according to Commerce Department data. March marked the biggest monthly increase since January 2023 and also outpaced the Dow Jones estimate of a 1.2% increase, according to CNBC.

Vehicles and parts dealers shifted into high gear in March, as sales in that category revved up 5.3% from February and 8.8% from a year ago. Car manufacturers offered discounts ahead of anticipated tariffs on the auto sector, NPR reported. But now, President Donald Trump said he may pause his 25% tariff on imported vehicles to give automakers some breathing room, the AP reported.

Compared to February, spending increased 3.3% at building materials and gardening supplies stores; 2.4% on sporting goods, musical instruments, and books; 0.8% on electronics and appliances; 0.4% on clothing and accessories; and 0.2% on food and beverages. Spending was down 0.7% on furniture for the month.

People certainly are not buying more because they’re feeling bullish about the economy, judging by recent consumer surveys. A recent University of Michigan study showed that consumer sentiment dropped for the fourth consecutive month in April, down 11% from the previous month.