Retail sales in US grew 4% YoY in March despite high inflation: NRF

In February, sales were down 0.7 per cent month over month but up 13.2 per cent year over year. NRF’s numbers were up 8.6 per cent unadjusted year over year on a three-month moving average as of March. That is consistent with NRF’s forecast that 2022 retail sales will increase between 6 per cent and 8 per cent to total between $4.86 trillion and $4.95 trillion.

Clothing and clothing accessory stores were up 2.6 per cent month-over-month seasonally adjusted and up 7.5 per cent unadjusted year-over-year. Online and other non-store sales were down 6.4 per cent month-over-month seasonally adjusted but up 2.6 per cent unadjusted year-over-year, according to the NRF report.

The US Census Bureau said overall retail sales in March were up 0.5 per cent seasonally adjusted from February and up 6.9 per cent year over year. That compared with increases of 0.8 per cent month over month and 18.2 per cent year over year in February. Despite occasional month-over-month declines, sales have grown year over year every month since May 2020, according to Census data.

“March retail sales show that consumers have maintained their ability to spend in the face of record-level inflation, supply chain issues and geopolitical unrest,” NRF president and CEO Matthew Shay said. “Consumers are adapting and shopping smarter for themselves and their families. We believe the strength of the consumer can carry the economy through this considerable economic uncertainty if policymakers implement measured policies and do not overreact to current conditions.”

“While prices soared in March and eroded spending power, shoppers remained resilient and sales were healthy,” NRF chief economist Jack Kleinhenz said. “Consumers have the willingness to spend and their ability to do so has been supported by rapid hiring, increased wages, larger-than-usual tax refunds and the use of credit. They are largely dealing with the shock of gas prices but will be facing higher interest rates as the Federal Reserve tightens monetary policy in the coming months. The challenge for the Fed is to cool off demand without pushing the economy into a dramatic slowdown.”

Fibre2Fashion News Desk (KD)