March Retail Sales Boosted by Tax Refunds

Retail sales rose in March as consumers received higher-than-usual tax refunds, making up for increased gasoline prices, according to the National Retail Federation’s (NRF) CNBC/NRF Retail Monitor.

“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,” says Matthew Shay, NRF president and CEO. “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.”

Total retail sales, excluding automobile dealers and gasoline stations, were up 0.4% seasonally adjusted month over month and up 6.59% unadjusted year over year in March. That compares with increases of 0.28% month over month and 6.24% year over year in February.

The Retail Monitor calculation of core retail sales (excluding restaurants in addition to auto dealers and gas stations) was up 0.41% month over month in March and up 7.05% year over year. That compares with increases of 0.27% month over month and 5.87% year over year in February.

During the first quarter, total sales were up 6.18% year over year and core sales were up 6.14%.

Building and garden supply store sales were down 0.08% month over month, seasonally adjusted in March and down 0.47% year over year, unadjusted.