Consumers appeared to keep up their steady spending pace in March, according to the latest findings of the NRF Executive Opinion Survey, a monthly index by the National Retail Federation (NRF).
The Retail Sector Performance Index (RSPI) grew at a slightly slower pace in March with a reading of 58.3 points, up 16.3 points from a year ago and 4.5 points down from Februarys reading (62.8). (The RSPI measures retail executives' evaluations of monthly sales, customer traffic, the average transaction per customer, employment, inventories and a six-month-ahead sales outlook expectation. The RSPI is based on a scale of 0.0 100.0 with 50.0 equaling normal.)
“Consumers remain enthusiastic about shopping as they begin to receive tax returns,” said Tracy Mullin, NRF President and CEO. “Retailers are trying to give consumers every reason to spend those checks at their stores with special incentives and promotions.”
The strength in the RSPI was fueled by above-normal readings in all key aspects of the survey including monthly sales, customer traffic, the average transaction per customer, inventories and a six-month-ahead sales outlook expectation. The only areas to show weakness were employment and pricing power (See Summary Statistics Chart Below).
“The summer months could prove more challenging for retailers as gas prices continue to rise,” said Mullin. “Rising gas prices represent an additional tax on consumers incomes by costing them billions of dollars that could be spent elsewhere.”