US retail sales rose by 1.7% in March, marking the largest increase in a year. This acceleration follows a 0.7% increase in February, as American shoppers increased their overall spending.
The rise was primarily driven by a surge in gasoline station receipts. Higher prices at the pump, caused by the war and ongoing conflict in Iran, contributed significantly to the total increase.
Outside of gasoline, there was better-than-expected spending in other categories. Excluding gas prices, growth was a slim 0.6%, which was helped in part by warm weather and government tax refunds.