Retail sales up 1.7% in March from February driven by a spike in gas prices due to the Iran war
Summary
Retail sales in the U.S. rose 1.7% in March compared to February, mainly because gas prices increased due to the ongoing Iran war. Gas station sales jumped 15.5%, while other stores like department stores and furniture also saw sales increases. Higher gas prices have affected consumer mood, but tax refunds and warm weather helped spending.Key Facts
- U.S. retail sales increased by 1.7% in March from February, the fastest rise in over three years.
- The Iran war, now eight weeks long, caused a spike in gas prices, which strongly influenced these sales.
- Sales at gas stations rose by 15.5%, the largest increase among all retail categories.
- Department stores saw a 4.2% sales increase, furniture stores 2.2%, and online retailers 1%.
- The overall increase excluding gas was 0.6%, supported by government tax refunds and warmer weather.
- The Iran war has shut down the Strait of Hormuz, cutting off about 20% of the world’s oil supply, which raised U.S. gas prices above $4 per gallon.
- Consumer confidence fell to a record low in April due to the Iran war and higher gas prices.
- Rising fuel costs are expected to increase prices on many products as transportation expenses rise.
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