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Retail spending fell in March as consumers pull back

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Retail spending fell in March as consumers pull back




Washington, DC
CNN
 — 

Spending at US retailers fell in March as consumers pulled back after the banking crisis fueled recession fears.

Retail sales, which are adjusted for seasonality but not for inflation, fell by 1% in March from the prior month, the Commerce Department reported on Friday. That was steeper than an expected 0.4% decline, according to Refinitiv, and above the revised 0.2% decline in the prior month.

Investors chalk up some of the weakness to a lack of tax returns and concerns about a slowing labor market. The IRS issued $84 billion in tax refunds this March, about $25 billion less than they issued in March of 2022, according to BofA analysts.

That led consumers to pull back in spending at department stores and on durable goods, such as appliances and furniture. Spending at general merchandise stores fell 3% in March from the prior month and spending at gas stations declined 5.5% during the same period. Excluding gas station sales, retail spending retreated 0.6% in March from February.

However, retail spending rose 2.9% year-over-year.

Smaller tax returns likely played a role in last month’s decline in retail sales, along with the expiration of enhanced food assistance benefits, economists say.

“March is a really important month for refunds. Some folks might have been expecting something similar to last year,” Aditya Bhave, senior US economist at BofA Global Research, told CNN.

Credit and debit card spending per household tracked by Bank of America researchers moderated in March to its slowest pace in more than two years, which was likely the result of smaller returns and expired benefits, coupled with slowing wage growth.

Enhanced pandemic-era benefits provided through the Supplemental Nutrition Assistance Program expired in February, which might have also held back spending in March, according to a Bank of America Institute report.

Average hourly earnings grew 4.2% in March from a year earlier, down from the prior month’s annualized 4.6% increase and the smallest annual rise since June 2021, according to figures from the Bureau of Labor Statistics. The Employment Cost Index, a more comprehensive measure of wages, has also shown that worker pay gains have moderated this past year. ECI data for the first quarter of this year will be released later this month.

Still, the US labor market remains solid, even though it has lost momentum recently. That could hold up consumer spending in the coming months, said Michelle Meyer, North America chief economist at Mastercard Economics Institute.

“The big picture is still favorable for the consumer when you think about their income growth, their balance sheet and the health of the labor market,” Meyer said.

Employers added 236,000 jobs in March, a robust gain by historical standards but smaller than the average monthly pace of job growth in the prior six months, according to the Bureau of Labor Statistics. The latest monthly Job Openings and Labor Turnover Survey, or JOLTS report, showed that the number of available jobs remained elevated in February — but was down more than 17% from its peak of 12 million in March 2022, and revised data showed that weekly claims for US unemployment benefits were higher than previously reported.

The job market could cool further in the coming months. Economists at the Federal Reserve expect the US economy to head into a recession later in the year as the lagged effects of higher interest rates take a deeper hold. Fed economists had forecast subdued growth, with risks of a recession, prior to the collapses of Silicon Valley Bank and Signature Bank.

For consumers, the effects of last month’s turbulence in the banking industry have been limited so far. Consumer sentiment tracked by the University of Michigan worsened slightly in March during the bank failures, but it had already shown signs of deteriorating before then.

The latest consumer sentiment reading, released Friday morning, showed that sentiment held steady in April despite the banking crisis, but that higher gas prices helped push up year-ahead inflation expectations by a full percentage point, rising from 3.6% in March to 4.6% in April.

“On net, consumers did not perceive material changes in the economic environment in April,” Joanne Hsu, director of the surveys of consumers at the University of Michigan, said in a news release.

“Consumers are expecting a downturn, they’re not feeling as dismal as they were last summer, but they’re waiting for the other shoe to drop,” Hsu told Bloomberg TV in an interview Friday morning.

This story has been updated with context and more details.



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Israel Receives Remains of Four More Gaza Hostages

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Israel Receives Remains of Four More Gaza Hostages



The remains were initially handed over to the Red Cross before being transferred to Israel for forensic examination, marking the latest step in implementing a ceasefire aimed at ending over two years of conflict in the Gaza Strip.

On Monday, Hamas had already transferred the remains of four hostages, shortly after releasing the last 20 living hostages under the ceasefire agreement brokered by US President Donald Trump.

Separately, a Gaza hospital reported receiving the bodies of 45 Palestinians returned by Israel as part of the same ceasefire plan.

The hostages whose remains were handed over on Monday included Israeli citizens Guy Iluz, Yossi Sharabi, Daniel Peretz, and Nepalese agriculture student Bipin Joshi.

Yossi Sharabi, 53 at the time of Hamas’s October 7, 2023 attack on Israel, was abducted from Kibbutz Beeri.

Daniel Peretz, 22 at the time, was killed on the day of the assault, with his body taken to Gaza.

Guy Iluz, 26, was attending the Nova music festival when militants launched the attack. He was wounded and abducted alive but later died of untreated injuries in captivity, with his death announced in December 2023.

Sharabi’s wife, Nira, expressed relief at the return of her husband’s remains, saying it allows the family to finally bring closure to a nightmare that began over two years ago and provide him a dignified burial, according to the Hostages and Missing Families Forum.

Courageous’ Joshi

The military said the final causes of death for the four hostages would be determined following forensic examinations.

Joshi, who was 22 at the time of the attack, was part of a Nepalese agricultural training group that had arrived in Israel three weeks before the Hamas assault.

He was abducted from Kibbutz Alumim.

“It is assessed that he was murdered in captivity during the first months of the war,” the military said.

Joshi’s Nepalese friend Himanchal Kattel, the group’s only survivor, told AFP the attackers had thrown a grenade into their shelter, which Joshi caught and threw away before it exploded, saving Kattel’s life.

Joshi was a “courageous” student, his teacher Sushil Neupane said.

“We were deeply hoping that Bipin would return home. This news hurts us all… Our hope has died,” he said.

Families of hostages whose remains are still being held in Gaza waited anxiously.

“It’s difficult. You know, we kind of had the rollercoaster on the up yesterday and now we’re on the down,” said Rotem Kuper, son of Amiran Kuper, whose remains are held in Gaza.

Job is NOT DONE

In Tel Aviv, people gathered to celebrate the liberation of the living hostages and demand the return of the others’ remains.

“I don’t know what to feel because I didn’t think (we’d) reach this day where all the living hostages will return,” demonstrator Barak Cohen told AFP.

“But still I see great difficulties in returning the remaining dead hostages,” he said.

Another participant, Tovah Baruch, said she was imagining “a world where all the hostages are back, everybody is buried and we work on a new era and with peace”.

The bodies of 45 Palestinians that had been in Israeli custody were handed over to the Nasser Medical Centre in Gaza, the hospital said.

Under the Trump deal, Israel was to turn over the bodies of 15 Palestinians for every deceased Israeli returned.

“A big burden has been lifted, but the job is NOT DONE. THE DEAD HAVE NOT BEEN RETURNED, AS PROMISED! Phase two begins right NOW!!!” Trump said on X.

Palestinian militants are still holding the bodies of 20 hostages, which are expected to be returned under the terms of the ceasefire agreement.

“We are determined to bring everyone back,” said Prime Minister Benjamin Netanyahu after visiting hostages freed Monday at Beilinson Hospital in central Israel.

The freed hostages had experienced weight loss, said hospital director Noa Eliakim Raz.

“Being underground affects all the body’s systems,” she told journalists.

“There is no fixed timetable — each person is recovering at their own pace. It’s important that they heal slowly,” she added.

Twins Ziv and Gali Berman, who were reunited on Monday, said they had been held separately and in complete isolation, according to Channel 12.

The two, who were 28 when abducted, described enduring long periods of hunger, alternating with short intervals when they were better fed, the report said.



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Dubai court delivers major verdict against Indian businessman BR Shetty

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Dubai court delivers major verdict against Indian businessman BR Shetty


A gavel and a block is pictured at the George Glazer Gallery antique store in this illustration picture taken in Manhattan, New York City, US, August 18, 2020. — Reuters
A gavel and a block is pictured at the George Glazer Gallery antique store in this illustration picture taken in Manhattan, New York City, US, August 18, 2020. — Reuters

DUBAI: The Dubai International Financial Centre (DIFC) Court, which deals with financial matters in the Emirate of Dubai, has ordered Indian businessman BR Shetty to pay approximately $46 million.

According to the court, Shetty lied under oath about a personal guarantee for a $50 million loan in 2018.

Justice Andrew Moran of the Dubai International Financial Centre (DIFC) Court said that BR Shetty’s testimony was “an incredible series of lies and contradictory claims.”

The court issued the verdict based on all documentary evidence and photographs, including confirmation of BR Shetty’s signatures.

The court also imposed an annual interest of 9% until the full repayment of the loan, under which the Indian businessman BR Shetty will have to pay approximately $11,341 per day in interest.

BR Shetty established a healthcare system (hospital) in the United Arab Emirates in 1975, which became the country’s largest private healthcare company.

However, after the revelation in 2019 of $4.4 billion in previously concealed loans, the company collapsed financially, prompting BR Shetty to resign from his position and leave for India.





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Major media outlets reject Pentagon reporting rules

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Major media outlets reject Pentagon reporting rules


US Secretary Defence Peter Hegseth speaks to newsmen  at the Pentagon in June 2025. — AFP/file
US Secretary Defence Peter Hegseth speaks to newsmen  at the Pentagon in June 2025. — AFP/file

WASHINGTON: US and international news outlets, including The New York Times, AP, AFP, and Fox News, on Tuesday declined to sign new restrictive Pentagon media rules, meaning they will be stripped of their press access credentials.

The new rules come after the Defense Department restricted media access inside the Pentagon, forced some outlets to vacate offices in the building, and drastically reduced the number of briefings for journalists.

The media policy “gags Pentagon employees” by threatening retaliation against reporters who seek out information that has not been pre-approved for release, the Pentagon Press Association (PPA) said.

AFP said in a statement Tuesday that it “cannot sign up to the terms of the Pentagon document that would require media to acknowledge insufficiently clear new policies that appear to fly in the face of US constitutional principles and of the basic tenets of journalism.”

“We shall continue to cover the Pentagon and the US military freely and fairly, as we have done for decades,” the agency added.

TV networks ABC, CBS, CNN, Fox and NBC issued a joint statement saying they will not sign the new rules, which would “restrict journalists’ ability to keep the nation and the world informed of important national security issues.”

Alongside Fox, other conservative outlets, The Washington Times and Newsmax are also reportedly refusing to agree to the new policy, which could see a total of some 100 press passes revoked.

The new rules are the latest in a series of moves that restrict journalists’ access to information from the Pentagon, the nation’s single largest employer with a budget in the hundreds of billions of dollars per year.

The Defense Department announced earlier this year that eight media organizations, including The Times, The Washington Post, CNN, NBC and NPR had to vacate their dedicated office spaces in the Pentagon, alleging that there was a need to create room for other — predominantly conservative — outlets.

It has also required journalists to be accompanied by official escorts if they go outside a limited number of areas in the Pentagon — another new restriction on the press.

And it has drastically reduced the number of briefings for journalists — holding some half a dozen this year, compared to an average of two or more per week under president Joe Biden’s administration, which left office in January.

Pentagon chief Pete Hegseth — a former Fox News host and Army National Guard veteran — has campaigned against leaks from the Defense Department.

But he was inadvertently involved in the release of sensitive information earlier this year, sharing details about upcoming strikes against Yemen’s Huthi rebels in a chat on messaging app Signal to which a journalist had been mistakenly added.

Hegseth has also reportedly used Signal to discuss US strikes on Yemen with his wife and other people not usually involved in such discussions.

His use of Signal has prompted an investigation by the Pentagon inspector general’s office





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