US retail sales jump by most in two years on car-purchase surge
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The news: A surge in car buying has driven US retail sales to their biggest jump in over two years.
The numbers: Retail sales for March increased 1.4% after an unrevised 0.2% rise in February, data from the Commerce Department’s Census Bureau shows. Excluding autos, sales climbed 0.5%.
The context: The rapid advance suggests that consumers dashed to make vehicle purchases before the Trump administration’s 25% auto tariffs take effect at the beginning of May. The tariffs are set to drive the price of cars up dramatically.
The overall retail figures saw 11 out of the report’s 13 categories posting increases, with building materials, sporting goods and electronics climbing perhaps also in anticipation of incoming tariffs on those goods.
Housing data also released Wednesday also saw US 30-year mortgage rates jump last week, with rates rising by the most since October on the back of Treasury market upheaval. The heightened volatility caused a pullback in financing applications for home purchases and refinancing.
The contract rate on a 30-year mortgage increased 20 basis points in the week ended April 11 to 6.81%, the highest since February, according to Mortgage Bankers Association data. Rates on adjustable and 15-year fixed mortgages also climbed.
The sources: US Census Bureau, MBA, Bloomberg
