Overview

• Retail sales in the U.S. fell 1% from February to March, indicating a slowing economy.
• Sales fell among most retailers, including auto dealers, gas stations, electronics stores, and home and garden stores.
• Even after excluding gas stations, retail sales still fell by 0.6%.
• The decline in sales adds to other recent evidence that the economy is cooling as consumers grapple with higher interest rates and the impact of a year-long bout of elevated inflation.
• Economists are closely watching to see if banks pull back on lending in the wake of the collapse of two large banks last month, which could further weaken growth.