Retail sales surged in March

The Commerce Department said Thursday that retail sales soared a seasonally adjusted 9.8% in March compared with the month prior.

That was far better than the 5.9% bump economists surveyed by Refinitiv had predicted -- and a sizable turnaround from the previous month. In February, retail sales fell more than expected, declining 2.7% according to the revised data.

The sharp March rebound came on the heels of the $1,400 stimulus checks included in President Joe Biden's American Rescue Plan.

An improving jobs market, more people getting vaccinated and loosened restrictions on stores and malls also likely helped.

The job market recovery gathered steam last month with 916,000 jobs added, the biggest gain since August. And the more people are gainfully employed, the more they can spend.

More than one-third of the US population has received at least one vaccine dose, according to the CDC. Vaccinations are key to a full reopening of the economy and wary shoppers returning to shop in stores and eat at restaurants.

The vaccine rollout is "generating a higher level of consumer confidence," Bed Bath & Beyond CEO Mark Tritton said on a call with analysts Wednesday. "It's definitely affecting our traffic trends."

Some clothing retailers and restaurants hit hard by the pandemic say they expect to benefit from increased consumer demand in the coming months.

Levi CEO Chip Bergh said last week that there was "a lot of pent-up demand from people being stuck at home and hunkered down and not really doing a lot of shopping."

But there are still big question marks, including what happens when the stimulus package wears off and how rising coronavirus case counts in states like Michigan impact consumer sentiment.

This is a developing story. It will be updated.