US retail sales soared in March, strengthening the outlook for the US economy this year.

Indeed, total retail sales increased by a hefty 1.6% in March after declining by 0.2% in February. The March gain in sales represents a sharp rebound from lackluster sales dating back to December.

The March rebound in retail sales also completely erased December’s huge sales loss which at the time had the effect of shifting the outlook for consumer spending and the overall economy onto a lower growth trajectory.

Fortunately, the sharp sales rebound is a sign that the strong job market has likely made consumers more eager to spend in ways that boost overall economic growth.

The March sales increase was broad based as both durable and non durable sales increased. This suggests that consumer spending will post rather solid growth in the first quarter.

Motor vehicle and parts sales surged 3.1% in the month after declining 0.1% in February. Gasoline station sales increased 3.5% for the second straight month.

The US economy had been showing signs of slowing heading into 2019, before the Federal Reserve put rate hikes on indefinite hold and a government shutdown clouded the outlook.

Nonetheless, the latest retail sales gains have improved the economic outlook. For example, the Federal Reserve Bank of Atlanta estimates for the first-quarter annual growth was revised up to 2.8% from a previous estimate of 2.4%.