Global Watch: US Retail Sales Rose 0.5% Month On Month In March

U.S. retail sales rose for the third consecutive month in March, up 0.5% month on month, down from the revised 0.8% month on month growth in February, the Commerce Department said on Thursday. The main reason is that consumers spend more on necessities such as gasoline and food. After the rise in oil and gasoline prices caused by the conflict between Russia and Ukraine, gasoline sales in March increased by 8.9% month on month, and retail sales excluding gasoline sales decreased by 0.3% month on month. The St. Louis Federal Reserve Bank and economists estimate that retail sales fell 0.7% month on month in March after adjusting for inflation.

The decline in online shopping and car sales also held back total spending. Spending on appliances, electronics, groceries, dining out and clothing increased in a number of other categories.

As a result of rising prices, household spending on food, gasoline and utilities has increased. In April, consumers' spending on online shopping decreased by 2.0% compared with that of online shopping.

Despite the rise in prices, consumers have shown a willingness to spend on limited activities in the early stages of the epidemic. Airlines reported strong demand for leisure travel, boosting the tourism dependent local economy.

(source: website of the Ministry of Commerce)