NEW YORK — Shoppers accelerated their spending in March from February, but they spent most of their money at the gas pump.
A spike in gas prices due to the Iran war, now in its eighth week, resulted in a hefty 1.7% gain in retail sales in March after a revised 0.7% increase in February, according to the Commerce Department’s report on Tuesday. The report marks the first read on spending to capture the effects of the Iran war.
Excluding gas prices, the number was a slim 0.6%, helped in part by government tax refunds and warm weather.
Business at gas stations rose 15.5% percent. Elsewhere, sales at department stores rose 4.2%, while sales at furniture stores were up 2.2%. Online retailers saw a 1% gain.
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The snapshot offers only a partial look at consumer spending and doesn’t include things like travel and hotel stays. But the lone services category – restaurants – registered an increase of 0.1%.
The Iran war began Feb. 28 and has shut down the Strait of Hormuz, cutting off one-fifth of the world’s oil supply.
