- NEWS Desk Global
STRONG US RETAIL SALES BOOSTS FIRST-QUARTER GROWTH ESTIMATES
In March, U.S. retail sales surged more than anticipated, driven by a notable increase in purchases from online retailers. This trend provides further confirmation that the economy concluded the first quarter on a solid footing. The robust employment gains witnessed in March, coupled with a rise in consumer inflation, have strengthened expectations that the Federal Reserve may postpone any interest rate cuts until September. Some economists believe that the opportunity for rate reductions this year is diminishing.
The strong performance in retail sales prompted economists at Goldman Sachs to revise their estimate for first-quarter gross domestic product (GDP) growth to a 3.1% annualized rate, up from the previous pace of 2.5%. For context, the economy expanded at a 3.4% rate in the fourth quarter.