March Retail Sales Miss Expectations as Consumers Spend on Essentials

April 19, 2022 | Charlsy Panzino and Chris Hudgins |S&P Market Intelligence

S&P Capital IQ reported that retail sales growth in March missed expectations as consumers shifted their spending amid surging inflation. Retail and food services increased 0.5% month over month in March, according to U.S. Census Bureau data released April 14. The latest numbers followed a lower-than-expected increase in February retail sales.

Consumer prices rose at the fastest rate in 40 years during March, driven by rising costs for many goods, including energy and food. “The U.S. consumer is showing more signs that the surge in gasoline and food prices is taking up a bigger chunk out of their wallets,” Edward Moya, a senior market analyst with OANDA, said in an April 14 report.

“Households spent freely at in-person establishments such as department stores, malls, and restaurants while continuing to pare back their online shopping,” said Lydia Boussour, lead U.S. economist for Oxford Economics, in an April 14 note. “And gas stations’ sales surged by the most in a year amid higher prices at the pump.”

Sales at gas stations were up 37% in March year over year and 8.9% month over month. The national average price of gas was $4.07 per gallon as of April 14, according to AAA.

Consumer prices jumped 1.2% in March from February, according to the Bureau of Labor Statistics. On an annual basis, consumer prices are up 8.5%.

Source: S&P Capital IQ