By Arlenys Tabare
This Tuesday, the United States Department of Commerce published the report on retail sales, which increased for the month of March to 1.7%, one of the highest levels in three yearsas a consequence of the increase in energy prices in recent weeks due to the development of the war in Iran.
The analysis highlighted that, in the month of March, Commercial activity at the country’s gasoline pumps also increased by 15.5%, That is to say, a large part of consumer spending since the conflict in the Middle East began has been allocated to the purchase of fuel, which is, according to AAA, above $4 dollars per gallon.
The report also indicated that online retail sales saw increases of up to 1% in March; Sales of more specialized stores, such as furniture and home goods, rose 2.2%, while electronics and appliances rose 0.9%. For its part, Department store sales increased 4.2%.
For Heather Long, chief economist at Navy Federal Credit Union, this figure is the most impressive retail sales of March. “Overall, the American consumer remains in good health.”
According to Long, “Additional income from tax refunds is helping many households weather this oil crisis, but that extra money won’t last forever.”said. The economist also mentioned the impact of tariffs on a certain group of products and services that saw an increase in the last month.
Although it could be one of the highest levels in retail sales, consumers may continue to be cautious when it comes to spending; “especially in the most disadvantaged sectors of the economy, people are moving from wants to needs,” said Bryan Eshelman, leader of the retail sector in the Americas and general director of the consulting firm AlixPartners.
According to the last report from the Bureau of Labor Statistics (BLS), year-over-year inflation stood at 3.3%. Although the price of gasoline could be a key indicator, economists say that the full and general impact that the war will have on Iran cannot yet be measured, especially if it is not determined whether or not it will continue to prolong.
Keep reading:
- Will gasoline prices fall due to the ceasefire in Iran? This is what the specialists say
- Stock market: S&P 500 closes week higher after fragile ceasefire with Iran
- Consumer confidence fell 11% since the beginning of April
- US GDP grew 0.5% during the fourth quarter
- Producer prices in the United States increased 0.5% in March due to the war in Iran
