U.S. retail sales climb most since May 2020
U.S. retail sales accelerated in March by the most in 10 months as business reopenings, increased hiring and a fresh round of stimulus checks emboldened shoppers.
The value of overall sales increased 9.8% last month in a broad advance after an upwardly revised 2.7% decline in February, Commerce Department figures showed Thursday. The median forecast in a Bloomberg survey of economists called for a 5.8% gain in March receipts.
The distribution of $1,400 stimulus checks to individuals and robust job growth last month help explain the rebound in sales, closing out a quarter of sturdy consumer demand. A quicker pace of Covid-19 vaccinations and the easing of pandemic-related restrictions on activity will probably underpin sales, especially in retail categories that have been hardest hit by social distancing.
A separate report Thursday showed a plunge in initial state jobless claims. Applications dropped to a fresh pandemic low, signaling a further strengthening of the job market and economy.
The outsize gain during the month also reflected a rebound from February, when economic activity was limited by sub-freezing temperatures and winter storms that overwhelmed power grids in Texas and the Great Plains.
The government’s report showed all 13 retail categories posted sales gains in March.
Receipts at restaurants rose 13.4% in March, while sales at apparel retailers jumped 18.3% -- both the strongest advances since June of last year.