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.

U.S. gas prices are climbing fast, and drivers are paying the highest pump prices since 2022 as the Iran war shakes oil markets. Many drivers face wild swings between stations and even from one day to the next. The Energy Information Administration says about half the price covers crude oil, and about 20% goes to refiners. Taxes take nearly 20%. Experts say retailers earn slim margins that get tighter when prices at the pump rise. Oil prices soared when U.S. markets opened Thursday, hours after President Donald Trump's speech on continuing the Iran war in which he asked Americans for patience.

Shoppers unexpectedly paused their spending in December from November, closing out the holiday shopping season and the year on a lackluster tone. The report, issued by the Commerce Department on Tuesday, surprised economists who were looking for growth despite mounting concerns about a slowing job growth, uncertainty about President Donald Trump's tariffs and other economic headwinds. And it raised questions about shoppers' ability to spend after they have remained resilient for months despite souring consumer confidence, economists said.

Sales at U.S. retailers and restaurants rose slightly in September as resilient consumers moderated their spending after splurging over the summer. Sales increased 0.2% last month from August, the Commerce Department said, in a report delayed more than a month because of the government shutdown. The retail sales figures suggest that Americans as a whole are still willing and able to boost their spending, a key driver of the economy, despite high prices for groceries, rent, and many imported goods hit by tariffs.

Some small grocery stores and neighborhood convenience stores are eager for the U.S. government shutdown to end and for their customers to start receiving federal food aid again. Late last month, the Trump administration froze funding for the SNAP benefits that about 42 million Americans use to buy groceries. The U.S. Department of Agriculture says about 74% of the assistance was spent last year at superstores like Walmart and supermarkets like Kroger. Around 14% went to smaller stores that are more accessible to SNAP beneficiaries. A former director of the United Nations World Food Program says SNAP is not only a social safety net for families but a local economic engine that supports neighborhood businesses.

The United States is experiencing a shortage of pennies after President Trump decided to stop their production earlier this year. Merchants across the country are struggling to provide exact change, and banks are rationing their remaining supply. Some retailers are even offering promotions to encourage customers to bring in pennies. The shortage began in late summer and is worsening as the holiday season approaches. While the government aims to save money by discontinuing the penny, the abrupt decision has left retailers and banks without guidance. A bill in Congress, the Common Cents Act, seeks to address some of the issues.

Target has named an insider as its next chief executive officer. The announced on Wednesday comes as the discount retailer tries to reverse a persistent sales malaise and to revive its reputation as the place to go for affordable but stylish products. Minneapolis-based Target said CEO Brian Cornell, who has led the company for 11 years, would step down on Feb. 1. The board of directors chose COO Michael Fiddelke to succeed him. Target has struggled to find its footing since inflation caused pinched shoppers to curtail their spending. Customers have complained of messy stores with merchandise that didn't reflect the expensive-looking but budget-priced niche that earned the retailer the nickname "Tarzhay."

Shoppers spent at a healthy pace in July, particularly at the nation's auto dealerships, even as President Donald Trump's tariffs start to take a toll on jobs and lead to some price increases. But the figures also underscore how uncertainty around the expansive duties is pushing shoppers to step up their purchases of dishwashers, furniture and other items ahead of the expected price increases. Retail sales rose a solid 0.5% last month, and June spending was stronger than expected, according to the Commerce Department's report released Friday. June's retail sales were revised upward to 0.9% from the original 0.6% increase, the agency said. The pace in July matched economists' estimates.