"Surprise Surge: US Retail Sales Exceed Expectations, Boost Economic Growth"

US retail sales rose 0.7% in March, surpassing expectations, with core retail sales jumping 1.1% and February sales being revised up. This, along with robust employment gains and a pick-up in consumer inflation, has led to an increase in first-quarter GDP growth estimates. Economists at Morgan Stanley raised their GDP growth estimate to 2.7% from 2.4%, and it is now expected that the Federal Reserve may delay cutting interest rates until September. Despite higher inflation and borrowing costs, consumer spending remains resilient, particularly among lower-income households benefiting from wage gains and a strong labor market. Online sales, gasoline station receipts, and food services and drinking places contributed to the increase in retail sales, while some areas like motor vehicles, furniture, and clothing saw declines.