BofA Data: US Online Spending Growth Accelerates to 12% in March

March Online Sales Surge

Bank of America data shows a significant acceleration in consumer online spending, which grew 12 percent year-over-year in March. This figure represents a one percentage point increase from February's growth rate, occurring despite tougher year-over-year comparisons.

Q1 E-commerce Performance Overview

For the entire first quarter, online spending increased by 11 percent, a notable rise from the 8 percent growth observed in the fourth quarter of the previous year. In stark contrast, brick-and-mortar spending remained flat during the same period. This trend pushed online retail penetration to 30.1 percent, an expansion of 2.1 percentage points year-over-year.

Impact on Retail Sectors

The robust online growth suggests potential upside for major e-commerce platforms like Amazon, whose North America retail segment growth may exceed Wall Street's 10 percent projection. Department stores and electronics retailers saw the strongest monthly acceleration in March. Meanwhile, online grocery spending growth decelerated slightly to 6 percent.

Summary

The sustained strength in e-commerce highlights a persistent shift in consumer behavior post-pandemic. The data points towards continued momentum for online retail, even as other sectors like transit and groceries show more moderate or decelerating growth trends.

FAQ

Q: What was the main driver of retail growth in Q1 according to BofA data?
A: Online spending was the primary driver, growing 11 percent year-over-year, while in-store spending was flat.

Q: Which sector showed the most significant acceleration in March?
A: Department stores demonstrated the strongest monthly acceleration in spending growth from February to March, up 8 percentage points.

Source: Investing.com