Recent Data Shows Economic Recovery Is Beginning
Retail Sales Surge 9.8% in March
Retail sales, a measure of purchases at stores, online, and in restaurants, jumped 9.8% in March, surpassing economists’ forecasts for growth. The results are the latest sign that the US economy is rebounding thanks to stimulus from the federal government and fewer restrictions on businesses. The increase in retail sales marks the largest monthly gain since May of 2020.
A decline in layoffs and an uptick in factory outputs are also contributing to the spring spending surge. Consumer spending is the biggest driver of economic activity. The strong showing in March is fueling optimism about economic growth this summer.
Retail Sales Surge is Broad Based
The March retail sales gains were led by purchases of sporting equipment, apparel, and food. Restaurants and bars saw a 13.4% increase in sales from February to March and 36% year-over-year growth. Meanwhile, sales of sporting goods increased 23.5% and apparel sales were up 18.3%.
The boom in retail sales comes as consumer confidence in the US hit its highest level since the pandemic began.
Jobless Claims Fall
In addition to better-than-expected retail sales, there were also other encouraging data points released yesterday. The US Labor Department reported 200,000 fewer initial jobless claims last week than the week before. Jobless claims, which are a proxy for layoffs, dropped from 769,000 to 576,000, which is the lowest number of initial jobless claims since March 2020. Meanwhile, industrial production, which measures the output of factories, utilities, and mines, rose 2.7% in March compared to February.
These data points reflect a US economy which is improving after more than a year of pandemic induced downturn. Vaccinations are rolling out, people are going back to work, and consumer spending is increasing. Economists are hopeful that these trends will continue in the months to come.
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS21041602
All your finances.
All in one app.
App Store rating
