Consumer Behavior

Retail sales grew in March despite tariff concern

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April 28, 2025

Retail sales grew in March, according to U.S. Census Bureau data, but consumers are worried about the impact of rising tariffs, according to the National Retail Federation.

"Retail sales strengthened in March, supported by continued solid growth in income, lower energy costs and bigger-than-usual tax refunds that all helped support household budgets," NRF Chief Economist Jack Kleinhenz said in a NRF press release. "However, there is no question that the consumer is not feeling great given the confusion of policy announcements from Washington. On-again, off-again rising tariffs and resulting turmoil in the stock market and world economy are clearly impacting consumer concerns about higher prices and future consumer spending growth."

March overall retail sales were up 1.4% seasonally adjusted month over month and up 4.6% unadjusted year over year. That compared with increases of 0.2% month over month and 3.5% year over year in February.

The news comes as NRF has forecast core retail sales will grow between 2.7% and 3.7% in 2025 compared with 2024.