Retail sales rose by 0.6% in March as consumer spending rebounded from a soft start to he year—driven by motor-vehicle sales and strength among furniture and non-store retailers. Analysts tied the solid reading to a healthy job market and increased consumer take-home pay (due to the recent tax reform).
Fourth-quarter gross domestic product (GDP) was revised higher in its final reading, from 2.5% to 2.9% annualized growth. Nonresidential investment and consumer spending contributed most, while residential investment detracted. Economists believe the U.S. economy remains on track to hit 3% annual growth in 2018, driven by tax reform and increased government spending.