WASHINGTON — U.S. retail sales extended their growth streak in March, supported by an influx of tax refunds that helped offset rising gasoline prices tied to geopolitical tensions, according to data released Tuesday by the National Retail Federation.
The CNBC/NRF Retail Monitor, powered by Affinity Solutions, showed that total retail sales, excluding auto dealers and gas stations, rose 0.4% month over month on a seasonally adjusted basis and climbed 6.59% year over year. That follows gains of 0.28% month over month and 6.24% year over year in February.
“Retail sales grew for a sixth consecutive month in March as the first wave of tax refunds offset higher gas prices resulting from the conflict in the Middle East,” NRF President and CEO Matthew Shay said. “Despite record low consumer sentiment and the highest inflation rate in two years, consumers continued to spend on household priorities. As consumers focus on costs, retailers remain laser-focused on keeping prices competitive and affordable.”
Core retail sales, which exclude restaurants, auto dealers, and gas stations, increased 0.41% month over month and 7.05% year over year. That compares with February gains of 0.27% month over month and 5.87% year over year. For the first quarter overall, total retail sales rose 6.18% year over year, while core sales advanced 6.14%.
A key driver was stronger-than-expected tax refunds. According to the IRS, average refunds reached $3,521 as of late March, up 11.1% from a year earlier following recent tax law changes.
Category performance was broadly positive. Health and personal care stores led growth, up 12.25% year over year, followed by clothing and accessories stores, up 10.89%, and sporting goods, hobby, music, and book stores, up 10.88%. Digital products also posted strong gains, up 9.39% year over year.
General merchandise stores climbed 8.77% year over year, while electronics and appliance stores rose 7.67%. Grocery and beverage stores saw more modest growth at 3.78%.
On a monthly basis, most categories also advanced, though furniture and home furnishings stores slipped 0.11% and building and garden supply stores declined 0.08%. The latter was the only category to post a year-over-year decrease, down 0.47%.
Unlike survey-based data from the U.S. Census Bureau, the Retail Monitor uses anonymized credit and debit card transaction data compiled by Affinity Solutions and is not subject to revision.
The March results highlight a consumer environment that remains resilient yet increasingly value-driven, with discretionary spending buoyed by temporary income boosts even as inflation and energy costs weigh on sentiment.
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