US retail sales soar; jobless claims drop

US retail sales rose by the most in 10 months in March as Americans received additional pandemic relief checks from the government and increased Covid-19 vaccinations allowed broader economic re-engagement, cementing expectations for robust growth in the first quarter.

The brightening economic prospects were underscored by other data on Thursday showing first-time claims for unemployment benefits tumbled last week to the lowest level since March 2020, when mandatory closures of nonessential businesses were enforced to slow the spread of the first Covid-19 wave.

Retail sales rebounded 9.8 per cent last month, the largest increase since May 2020, the Commerce Department said. Data for February was revised higher to show sales dropping 2.7 per cent instead of three per cent as previously reported. March’s rise pushed the level of sales 17.1 per cent above its pre-pandemic level and to a record high.

The broad-based rebound was led by motor vehicles, with receipts at auto dealerships accelerating 15.1 per cent. Sales at clothing stores soared 18.3 per cent. Consumers also boosted spending at restaurants and bars, leading to a 13.4 per cent jump in receipts. Still, sales at restaurants and bars are 1.8% per cent lower compared to March 2020.

The Labour Department said initial claims for state unemployment benefits decreased 193,000 to a seasonally-adjusted 576,000 for the week ended April 10, the lowest level since mid-march 2020. —