Retail sales in the United States experienced a slowdown in March, but spending was still higher than it was at the same time last year, according to the National Retail Federation (NRF). The NRF stated that retail sales “moderated” after strong gains in January and February. In February, sales were down 0.2% month over month but up 5.9% year over year. March sales were down 1% from February but up 2.9% year over year, according to the US Census Bureau.
“Retail sales moderated in March after posting strong gains in the first two months of the year,” said NRF President and CEO Matthew Shay. “Continued easing of inflation and the overall strength of the job market and wages are keeping the fundamentals of the consumer economy strong and should support their ability to spend on household priorities through 2023. Retailers recognise the pressure on consumers from increased prices in services and experiences and the impact of higher interest rates and are prioritising product mix, competitive pricing, and convenience to help consumers stretch their budgets.”
The NRF’s calculation of retail sales, which excludes automobile dealers, gasoline stations, and restaurants, showed that March was down 0.5% from February but up 4.6% unadjusted year over year. The figures were up 6% year over year on a three-month moving average as of March. The results come as the NRF is forecasting that retail sales will grow between 4% and 6% over 2022.
NRF’s Chief Economist Jack Kleinhenz said, “These results reflect both slower economic activity and lower prices because of easing inflation – which means fewer dollars spent even if consumers buy the same number of goods – but there is still a lot of spending in the economy. Keep in mind that households tend to shop less during the post-holiday season. In addition, tax refunds typically contribute to spending at this time of year but are smaller this year than last. Nonetheless, we are still looking at positive sales growth moving forward in 2023.”