Shoppers accelerated their spending in March from February, but they spent a good chunk of their money at the gas pump. A spike in gas prices due to the Iran war, now in its eighth week, resulted in a hefty 1.7% gain in March after a revised 0.7% increase in February, according to the Commerce Department's report on Tuesday. The report marks the first read on spending to capture the effects of the Iran war. Excluding gas prices, the growth was a 0.6%, helped in part by government tax refunds and warm weather.

White House economists estimate the United States has a shortage of 10 million houses. That's according to a report out Monday. It says more construction would lower prices, increase home ownership and fuel faster economic growth. President Donald Trump's approval ratings have slumped because of concerns over his handling of the economy. Trump has taken some steps to make it easier to build houses, but he's been slow to embrace other measures. The new report is from the White House Council of Economic Advisers. It lays out a blueprint for how more construction could help the middle class and the economy, setting up an argument Trump could make to voters.

The largest monthly jump in gas prices in six decades caused a sharp spike in inflation in March, creating major challenges for the inflation-fighters at the Federal Reserve and heightening the political challenges of rising costs for the White House. The gas price shock stemming from the Iran war has shifted inflation's trajectory, from a slow, gradual decline to a sharp increase further away from the Fed's 2% target. As a result, the central bank will almost certainly postpone any cut in interest rates for months. Gas prices are also a highly visible cost that has outsize impacts on consumer confidence and political sentiment.

American employers added a surprisingly strong 178,000 new jobs last month, rebounding from a dismal February. And the unemployment rate dipped to 4.3%. The Labor Department reported Friday that hiring marked a rebound from the loss of 133,000 jobs in February. The job gains were about three times what economists had forecast. The unemployment rate was down from 4.4% in February. But uncertainty surrounding the war with Iran — and its impact on energy prices — is clouding the outlook for the labor market.

A new Gallup survey finds that Americans' outlook on the job market is increasingly pessimistic. The negative shift may seem incongruous with the low unemployment rate, but the findings likely reflect an ongoing hiring drought. Just 28% of workers in a quarterly Gallup survey conducted in the last part of 2025 said now is a "good time" to find a job, with 72% saying it is a bad time. Those figures are a sharp reversal from just a few years ago, in mid-2022, when 70% said it was a good time. Pessimism is especially pronounced among young people and college graduates.