Retail Is Surging — Here’s What Everyone Is Spending Their Stimulus Checks On

The average household spent nearly a quarter of its stimulus check on goods and services last month, according to the Federal Reserve Bank of New York.

By Justin Chan Apr 15, 2021

This article is part of the Spend Smart series. Read more stories

Retail sales jumped in the weeks following the first disbursement of the third round of stimulus checks, according to the latest figures from the U.S. Department of Commerce.

The agency estimated that retail and food service sales grew 9.8% last month, to $619.1 billion. In February, advance monthly sales topped $563.7 billion but declined 2.7% from the month before.

Clothing and clothing accessories stores were among the biggest beneficiaries of an improving economy this year. In March, those businesses made more than $22 million in non-adjusted advance sales — a huge jump from the $10.8 million they made in March 2020. The auto industry also saw a significant uptick in non-adjusted advance sales last month. Motor vehicle and parts dealers collectively earned more than $145 million, compared to the nearly $83 million they made in non-adjusted sales in March 2020.

Related: Warren Buffett Says This Is the First Thing You Should Do With Your Stimulus Check

According to CNBC, the figures can largely be attributed to consumers who have been spending their latest round of stimulus checks. A recent report from the Federal Reserve Bank of New York points out that, in March, the average family saved about 41.6% of their check and spent 24.7% of it.

“Spending will almost certainly drop back in April as some of the stimulus boost wears off, but with the vaccination rollout proceeding at a rapid pace and households finances in strong shape, we expect overall consumption growth to continue rebounding rapidly in the second quarter too,” Michael Pearce, senior U.S. economist at Capital Economics, said in a statement obtained by CNBC.

Retail sales jumped in the weeks following the first disbursement of the third round of stimulus checks, according to the latest figures from the U.S. Department of Commerce.

The agency estimated that retail and food service sales grew 9.8% last month, to $619.1 billion. In February, advance monthly sales topped $563.7 billion but declined 2.7% from the month before.

Clothing and clothing accessories stores were among the biggest beneficiaries of an improving economy this year. In March, those businesses made more than $22 million in non-adjusted advance sales — a huge jump from the $10.8 million they made in March 2020. The auto industry also saw a significant uptick in non-adjusted advance sales last month. Motor vehicle and parts dealers collectively earned more than $145 million, compared to the nearly $83 million they made in non-adjusted sales in March 2020.

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Justin Chan

News Writer at Entrepreneur
Entrepreneur Staff
Justin Chan is a news writer at Entrepreneur.com. Previously, he was a trending news editor at Verizon Media, where he covered entrepreneurship, lifestyle, pop culture, and tech. He was also an assistant web editor at Architectural Record, where he wrote on architecture, travel, and design. Chan has additionally written for Forbes, Reader's Digest, Time Out...

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