Nominal retail sales in March were unchanged in the month following a 0.7% jump in February which was revised down slightly from an initially-reported gain of 0.8%. Expectations going into the report were for sales in March to rise 0.1%.
Expectations of steady retail sales largely reflected indications of falling gasoline prices that were expected to restrain gas station receipts.
Less expected was the 0.9% decline in sales at electronic and appliance stores. Some offset was expected from indications of rising auto sales with the component reportedly up 0.7% in March. Support to overall sales was also provided by a 3.1% jump in the clothing component.
The volume of March retail sales was up a stronger-than-expected 0.7% following unchanged activity in February indicating some marked weakness in prices in the month. A decline in gasoline prices had been expected but motor vehicle prices also reportedly weakened.
According to experts at RBC Economics, "the solid gain in March retail sales volumes augurs well for continued growth in overall GDP in the month despite indications of steady activity in both real manufacturing sales and wholesale trade in the month.
"Though our forecast assumes some slowing in the monthly rate from solid 0.3% gains in both January and February," the bank concludes, "today’s report implies the risk of slightly less slowing relative to our current monitoring of a 0.1% gain in March (Gross Domestic Product)."
