Sales are up 27.7 percent year-over-year, according to the US Census. Retail trade sales were up 9.4 percent from February, while auto and parts sales rose 71.1 percent year-over-year and restaurant and bar sales rose 36 percent year-over-year.
In addition to fantastic retail sales data, unemployment claims were reported at their lowest level since the pandemic. These two pieces of data are solid news for the US economy as consumers look to start traveling, eating out, and see loosened restrictions.
However, inflation concerns have started to materialize. Federal Reserve Chairman Jerome Powell believes the inflation to be temporary as the global supply chain starts to get the engine turning once again.
"So for a brief time, headline inflation will run hotter," Bernard Baumohl, chief global economist at The Economic Outlook Group, wrote Tuesday.
"There's nothing shocking or worrisome about it. We simply have an economy that is adjusting to two conflicting forces: (1) bottlenecks in the world supply chain that have slowed the delivery of goods to producers and retailers in the U.S.; and (2) a surge in demand from consumers and even businesses due to the trillions of dollars of fiscal stimulus that was designed to revive economic activity."