Up-to-date retail reports show that sales slowed in March, but spending was still higher than the same period last year.
The data was published by the National Retail Federation in April and showed that despite the slow-down, there was still a lot of spending in the economy.
The NRF’s President and CEO, Matthew Shay, reflected on the data. He said: “Retail sales moderated in March after posting strong gains in the first two months of the year.
“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.”
Adding: “Retailers recognize the pressure on consumers from increased prices in services and experiences, and the impact of higher interest rates, and are prioritizing product mix, competitive pricing and convenience to help consumers stretch their budgets.”
While the Federation’s Chief Economist, Jack Kleinhenz, continued: “March spending reversed the strong pace of core retail sales we saw earlier this year.
“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.”
The U.S. Census Bureau today said overall retail sales in March were down 1% from February but up 2.9% year over year. In February, sales were down 0.2% month over month but up 5.9% year over year.
The results come as the NRF is forecasting that 2023 retail sales will grow between 4% and 6% over 2022.