US retail sales grew moderately in March following two straight months of decline amid growing tariff concerns, the National Retail Federation (NRF) said.

Data from CNBC/NRF Retail Monitor showed total retail sales for the month in review, excluding automobiles and gasoline, rose 0.6 per cent month over month and 4.75 per cent from a year ago. By comparison, the US saw a monthly decrease of 0.22 per cent in February and a year-on-year increase of 3.38 per cent.

Clothing and accessories stores, which include jewellery shops, were up 0.76 per cent month over month and up 2.37 per cent from the same period in 2024.

NRF President and CEO Matthew Shay said the spending came before President Donald Trump’s “Liberation Day” tariff announcement on April 2.  

“The pullback we have seen the past few months comes despite strong economic fundamentals,” remarked Shay. “A major factor appears to be driven by the uncertainty caused by tariffs. March’s increase is partly the result of stocking up to get ahead of tariffs.”

Consumer sentiment is weakening amid continued uncertainties, and many consumers are shifting their disposable income into savings, he added.

NRF explained that the March results reflect consumer spending that came after Trump made public tariffs on China, Canada and Mexico in February but before he announced a minimum 10 per cent tariff on all US trading partners along with sweeping “reciprocal” tariffs on dozens of countries. 

The president suspended the counter tariffs for 90 days, but imposed additional tariffs on China, which resulted in back-and-forth escalation between China and the US, noted NRF.