U.S. retail sales recorded an encouraging recovery with a sharp increase in March amid more frequent inspections and a wider increase in Covid-19 vaccinations enabling economic re-involvement. This also boosted expectations of strong economic growth in the first quarter.
Retail sales rose 9.8% last month based on a report released by the Commerce Department on Thursday. Data for February revised higher showed sales declined 2.7% compared to 3.0% as previously reported. The March reading also far outperformed economists ’forecasts of a 5.9%increase.
Most households have received an additional $ 1,400 check, which is part of the White House’s $ 1.9 trillion stimulus package. Excluding vehicles, petrol, building materials and food services, retail sales rose 6.9% last month after a revised 3.4% decline in February.
Analysts estimate growth for the first quarter jumped to 9.8%. The economy grew at a rate of 4.3% in the fourth quarter.
On a different angle, a separate report from the Department of Labor on Thursday showed the number of unemployment benefit claims remained declining last week. Initial claims for unemployment benefits totaled 576,000 for the week ended April 10 compared to 769,000 in the previous week.
Although claims have dropped from a record 6.149 million in early April 2020, the reading remains above pre-pandemic levels. In a healthy labor market, unemployment claims typically range from 200,000 to 250,000.
The US dollar index, which measures the greenback against other currencies, was strong by 0.01% at 91.680 as of 9.05 p.m.
