Retail sales surged a seasonally adjusted 9.8 percent in March after dropping about 3 percent the month before, the Commerce Department said Thursday.
The increase was the biggest since May of last year, when stores reopened after closing at the start of the pandemic. It was also much larger than the 5.5 percent increase Wall Street analysts had expected.
Thursday’s report, which covers about a third of overall consumer spending, is the latest sign that the economy is improving as business restrictions are relaxed and more people are willing to head out to shop or eat. Employers, for example, added 916,000 jobs last month, the most since August. And U.S. consumer confidence surged in March to the highest level in a year.
The broad-based rebound was led by motor vehicles, with receipts at auto dealerships accelerating 15.1 percent. Sales at clothing stores soared 18.3 percent
Consumers also boosted spending at restaurants and bars, leading to a 13.4 percent jump in receipts. Still, sales at restaurants and bars are 1.8 percent lower compared to March 2020.
Receipts at electronics and appliance stores increased 10.5 percent and sales at furniture stores rose 5.9 percent. There were also hefty gains in sales at sporting goods, hobby, musical instrument and book stores. Sales at building material stores vaulted 12.1 percent. Online retail sales increased 6.0 percent.
Reuters and The Associated Press contributed to this report
