Consumer spending was stronger than expected in March as demand remained high, the Commerce Department reported Wednesday.
The advanced estimate of retail sales showed an increase of 1.4% on the month, higher than the 0.2% increase in February. The year-over-year rise was 4.6%, according to numbers adjusted for seasonality but not prices, while the monthly increase was the biggest since January 2023.
Excluding autos, the numbers also were stronger than expected, with sales up 0.5%. Motor vehicle and parts dealers reported a surge of 5.3% in sales.
Aside from the big move in auto-related sales, sporting goods, hobby and music stores saw a 2.4% increase, while building material and garden stores rose 3.3%. Food service and drinking places were up 1.8%, while gasoline stations reported a 2.5% decline as prices fell during the month.