Retail sales increased unexpectedly despite looming Trump tariffs, indicating consumer resilience. The Commerce Department reported a 1.6% jump, exceeding forecasts, suggesting consumers were unfazed at the end of Q1.
Motor vehicles, building materials, and online retailers were key contributors to the rise. Some speculate this was a pre-emptive surge, with consumers buying before potential price hikes. As Miller said, “There’s a sense that people are buying now before things get more expensive.”
Economists warn this trend may not be sustainable. Implemented tariffs may weaken spending and slow growth. The long-term impact of the trade war is uncertain, but current data shows economic momentum, but is it built to last?
