Retail sales jump as people rush to buy cars ahead of tariffs

Retail spending — one of the key drivers in the economy — saw its biggest jump in more than two years during March, as more people rushed to buy cars and other big-ticket items ahead of President Trump’s new tariffs.

Spending at stores, restaurants and car dealerships grew 1.4% in March compared to February, according to Wednesday’s data from the Commerce Department. That’s the biggest increase since January 2023 — and the driver was mainly autos.

Spending on cars, trucks and auto parts rose more than 5% over last month.

Automakers have offered discounts and shoppers rushed to auto lots in anticipation of prices rising as a result of new tariffs, which Trump announced last month and started applying for many imported vehicles early in April.

The car data group Cox Automotive had reported March as delivering the hottest new car sales in four years. Economists at Cox Automotive now predict the car-buying might last a couple of months before tariff-fueled price increases would cause sales to slow.

Even with a notable rise in retail sales last month, there are concerns that consumer spending could wane as the wider effects of tariffs kick in. Major retailers and big brands have begun scaling back their financial forecasts for the year.

The latest survey of consumer sentiment by the University of Michigan is noting steep declines in how people feel about the future of the economy, as anxiety rises over tariffs’ impact on prices. But March data, for now, still has people spending generously — on building and gardening supplies, sporting goods and going out to eat.

“The job market is holding tough and incomes are rising, and those are the main factors that drive consumer spending,” said Robert Frick, an economist at Navy Federal Credit Union, in a statement.

For comparison, retail spending in February barely rose, and it declined in January. Compared to a year ago, retail sales in March increased 4.6%.

NPR’s Camila Domonoske contributed to this report.

 

Is all this talk of recession indicators a sign a recession is coming?

For generations, people have looked for small, informal signs that a recession is coming or already here. This phenomenon recently exploded on social media, often in joke form.

Why knowing your neighbors can be an important climate solution

Earthaven Ecovillage fared remarkably well after Hurricane Helene. The community had backup power and water systems, as well as food supplies, but members also knew how to work together in a crisis.

By removing invasive bullfrogs, scientists help Yosemite’s native turtles recover

The huge amphibians "will literally just feed on anything that fits into their mouth" — including turtle hatchlings. Clearing thousands of frogs from ponds helped other species stage a comeback.

5 dark tales hit shelves this week

Sometimes all it takes to make your day a little brighter is to remind yourself just how dark life can get. Here are four dark novels and a true crime tale.

K-pop group BTS set to reunite as two more members complete military service

BTS has been on a break since June 2022 to focus on solo projects and serve in the South Korean military. All of the group's members are scheduled to finish mandatory enlistment by the end of June.

‘Day of the Jackal’ author Frederick Forsyth dies at 86

Born in 1938, Forsyth served as a Royal Air Force pilot before becoming a journalist. He covered the attempted assassination of French President Charles de Gaulle, which inspired The Day of the Jackal.

More Economy Coverage