Retail sales climbed a stronger-than-expected 1.4% in March, reflecting continued consumer resilience despite rising economic uncertainty and fears of inflation. The monthly increase, the biggest since January 2023, beat forecasts and suggests Americans are stepping up spending as they anticipate higher prices from upcoming tariffs backed by President Donald Trump.

Auto-related purchases led the gains, with motor vehicle and parts dealers reporting a 5.3% surge, likely as buyers moved early to avoid future cost spikes. Excluding autos, retail sales were still up 0.5%, beating expectations of a 0.3% rise. Other sectors also showed strength, including sporting goods, garden supplies, and restaurants, even as gasoline stations saw declines due to falling fuel prices.

Economists say the numbers reflect a “clearance sale” mentality among consumers bracing for tougher times. Despite weak sentiment indicators—like the University of Michigan’s near-record low consumer confidence reading—actual spending data tells a different story, showing that Americans are still buying while they can.