Despite this growth, the CNBC/NRF Retail Monitor suggests consumers maintained a cautious approach to spending, largely due to apprehensions about escalating tariffs.
The report explains the spending patterns observed in March occurred after US President Donald Trump’s declaration of tariffs on imports from China, Canada, and Mexico in February.
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This led to the overall US retail sector showing moderate growth following two consecutive months of decline.
The figures preceded the announcement made on 2 April when Trump declared at least a 10% tariff on goods from all US trading partners, coupled with extensive reciprocal tariffs on numerous countries. Although these reciprocal tariffs are currently on a 90-day hiatus, while additional levies on Chinese goods have led to increased tensions between China and the US.
NRF president and CEO Matthew Shay said: “Retail sales increased in March but only moderately, and the spending came before the president’s ‘Liberation Day’ tariff announcement.
“The pullback we’ve seen the past few months comes despite strong economic fundamentals. A major factor appears to be driven by the uncertainty caused by tariffs. March’s increase is partly the result of stocking up to get ahead of tariffs. With the economic outlook unclear and the situation fluid, consumer sentiment is weakening, and many consumers are shifting disposable income into savings.”
A survey by Prosper Insights & Analytics for NRF revealed that in early March, 46% of consumers were purchasing items like household appliances and clothing pre-emptively due to concerns that prices would rise from tariffs.
The report, powered by Affinity Solutions and published by the National Retail Federation (NRF), said total retail sales excluding automobiles and gasoline rose by 0.6% month over month after seasonal adjustment and surged by 4.75% year over year without adjustment
Core retail sales, excluding automobile dealers, gasoline stations, and restaurants, increased by 0.4% month over month and by 5.07% year over year in March.
The first quarter of the year saw total sales grow by 4.52% year over year, with core sales rising by 4.96%.
Yearly increases were noted across various categories, with digital products, general merchandise stores, and sporting goods/hobby/music/book stores leading the growth, according to Retail Monitor.
Earlier this month (April), the US fashion sector expressed its support for the temporary pause in tariffs, however it said a more definitive and extensive strategy is needed to reinstate stability and cost-effectiveness across the global fashion supply chain.
