Retail sales surge in March

Retail sales surged 9.8% month over month in March easily beating market expectations of 5.8%. KPMG Senior Economist Ken Kim offers three key takeaways from the report.

Kenneth Kim

Kenneth Kim

Senior Economist, KPMG US

+1 212-954-6144

Video transcript

Retail sales surged by 9.8 in march handily beating market expectations for a 5.8 increase. The one thing to note in the report is that the year-over-year comp showed a spectacular increase of 28, and that's simply due to base effects in which sales last march were constrained by business lockdowns. So what are the three key takeaways: First, there were many factors behind the search in march retail sales and they included the easing of business restrictions stronger jobs growth fourteen hundred dollars in relief checks sent to individuals and better weather across the country all played a part. Second, those activities associated with going out, such as sales at restaurants and bars and sporting goods sales, performed strongly in march; also clothing store sales and building material store sales did well with the latter being an indication that housing activity remains firm despite the nudge up in interest rates. Third, as long as vaccinations maintain the upper hand against covet and its variants we expect fogo fear of going out to be less of a constraint for consumer activity going forward and we look for the economy to return to a better place as the year progresses you.