ARLINGTON, Va.—After falling in February, retail sales rebounded strongly in March, rising 9.8%.
NAFCU's Curt Long noted "this gain is the second-largest in history, only surpassed by May 2020's gain," and predicted that GDP growth will benefit as a result this year.
"Retail sales skyrocketed in March fueled by stimulus checks, pared back social distancing measures, and good weather," said Long, NAFCU's chief economist and vice president of research. "The past year of volatility should steady once we are past the present burst of commerce. But with plenty of pent-up demand, pandemic savings, and eager consumers, the burst should last though the summer at least.
"The March figures showed eye-popping gains in travel, restaurants, and apparel as households are resuming spending in areas that were largely ignored over the past year," continued Long. "Nevertheless, spending at department stores and restaurants are still well below pre-COVID levels. NAFCU expects retail sales to remain a major tailwind through the rest of the year, fueling the best year of GDP growth since the early-1980s."
YoY Numbers
Year-over-year retail sales were up 27.7% in March, significantly up from February's 6.7% growth. Control group sales – which excludes auto, gas, and building material categories – were also up from a year ago, rising 7.8%.
Sector results were strong during the month. The sporting goods sector rose 23.5%, followed by clothing stores (+18.3%), motor vehicle and parts dealers (+15.1%), food service and drinking places (+13.4%), department stores (+13%) and nonstore retailers (+6%), Long said.