U.S. Retail Sales Surge 1.7% in March on Higher Gasoline Prices Amid Iran War
U.S. retail sales jumped 1.7% in March 2026, exceeding expectations and reaching the steepest growth since March 2025, largely driven by a record 15.5% surge in gasoline prices as oil costs spiked due to Middle East conflict tensions.
Retail Sales Beat Expectations
US retail sales rose sharply by 1.7% in March 2026, surpassing market expectations of 1.4% and following an upwardly revised 0.7% increase in February. This marks the steepest growth since March 2025, driven largely by a record 15.5% surge in gasoline station receipts as fuel prices spiked amid the escalating conflict with Iran.
Consumer Spending Resilient Across Categories
Despite rising pump prices, consumer spending remained solid across nearly all categories, likely boosted by larger-than-usual tax refunds. Sales increased at motor vehicle and parts dealers (0.5%), furniture and home furnishing stores (2.2%), electronics and appliance stores (0.9%), building material and garden equipment suppliers (0.7%), food and beverage stores (0.7%), health and personal care stores (0.5%), general merchandise stores (1.0%), and nonstore retailers (1.0%).
Core Retail Sales Strong
Core retail sales, excluding volatile sectors, climbed 0.7%, exceeding forecasts of 0.2%.