There are worries that rising interest rates as the Federal Reserve tries to stamp out inflation could cool demand in the months ahead. Online retail sales have declined from a peak of $100.0 billion in January to $90.350 billion in March. Others blamed shifting seasonal patterns. Online store sales tumbled 6.4% after falling 3.5% in February, the first back-to-back decline since the last two months of 2020, which some economists attributed to strained household budgets because of the gasoline price shock. This follows the rolling back of pandemic restrictions.Д«ut sales at auto dealerships fell 1.9% amid ongoing motor vehicle shortages.

Demand for services like air travel and hotel accommodation is surging, providing further support for consumer spending. Receipts at bars and restaurants, the only services category in the retail sales report, rose 1.0%. Sales at sporting goods, hobby, musical instrument and book stores rose 3.3%. There were also increases in receipts at building material, garden equipment and supplies stores as well as at furniture, food and electronics and appliance retailers. Last month, clothing store sales rose 2.6%. Annual inflation surged by the most in more than 40 years in March, though there are signs price pressures have peaked and should start to gradually abate.Д«etter job security is also allowing some consumers to take on more debt. The report from the Commerce Department on Thursday, which also showed stronger retail sales growth in February than initially thought, suggested consumer spending picked up in the first quarter, helping to underpin the overall economy.ДЄ tightening labor market, which is driving up wages, and massive savings accumulated during the pandemic are providing some cushion against inflation. retail sales increased solidly in March, boosted by record- high gasoline prices, but consumers are starting to feel the pinch of high inflation, with online spending posting back-to-back declines for the first time in more than a year. Weekly jobless claims rise 18,000 to 185,000.Core retail sales dip 0.1% online sales drop 6.4%.Gasoline accounts for bulk of rise in sales.

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