U.S. consumers spent $709.6 billion at retail stores and food service establishments during March, rising a better-than-expected 0.7% from the previous month and topping year-earlier spending by 4%, the Commerce Department reported Monday.

Month-over-month gains were led by categories including gas stations and online-only retailers, with notable year-over-over increases posted by food and drinking places, general merchandise stores, motor vehicle and parts dealers, and health and personal care stores. 

Notable decliners included furniture and home furnishing stores, down 0.3% from the prior month and falling 6.1% from a year earlier; and electronics and appliance stores, posting a 1.2% drop from a month earlier and a 0.6% decrease from March 2023. 

National Retail Federation Chief Economist Jack Kleinhenz said the latest government numbers, based on monthly company surveys, confirmed consumers remain resilient despite inflationary pressures. 

“While sales were mixed, several factors supported retail sales including an early Easter holiday, slightly larger 2023 tax refunds and stronger payroll growth over the last three months,” Kleinhenz said in a statement Monday. “Nonetheless, the increasing share of consumer spending going to services as prices for services rise remains a stubborn problem because it leaves less household income available to spend on retail goods.” 

An earlier monitor report by the NRF, CNBC and consulting firm Affinity Solutions, based on anonymized credit and debit card data, showed March U.S. retail sales growing about 0.2% from the prior month and rising 2.9% from a year earlier. 

Electric vehicle maker Tesla plans to reduce its global workforce by more than 10% in a bid to cut costs amid slowing sales and increased competition, CEO Elon Musk told employees in an internal memo. Tesla had about 140,000 employees worldwide as of December 2023, according to company filings.

“As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity,” Musk said in the memo first obtained and reported by EV news site Electrek.

“As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally,” the memo said. Timetables and locations of planned reductions were not specified. 

The effects of planned cuts on Tesla’s real estate were not immediately known. But the Austin, Texas-based company has invested significantly during the past decade in development of new retail showrooms, technology research offices and manufacturing facilities for its vehicles, EV batteries and related components. 

Tesla this month reported its first annual decline in vehicle deliveries since 2020 and is slated to report its first-quarter earnings results on April 23. The company has faced component supply chain disruptions and rising competition, particularly from rival EV makers in the U.S. and Asia, as electric and hybrid vehicles continue to grow their overall share of auto sales worldwide. 

Restaurant operators were among businesses applauding the U.S. Senate’s move to rescind a proposed labor rule making companies liable for workforce and other infractions by third-party firms operating on their premises, following an earlier repeal by the U.S. House. 

Trade groups including the National Restaurant Association said such a rule regarding joint-employer responsibility could place undue financial burdens on operators, by discouraging future location and hiring expansion by dining chains and their smaller independent franchisees. Sean Kennedy, the trade group’s vice president for public affairs, said the proposal “threatens the foundation upon which nearly a third of the restaurant industry is built.” 

“Restaurant ownership — especially for the franchisees that will be most impacted by the rule — grew significantly under the previous rule, opening doors for people who may not otherwise have been able to become an entrepreneur,” Kennedy said in a statement. 

Supporters including labor groups deem the rule necessary to protect worker rights, while opponents contend it could raise costs for businesses including restaurant chains and franchisees by making them liable for worker-related actions by outside providers of laundry, maintenance and other on-site services. 

The National Labor Relations Board unveiled the proposed rule in its latest form last year but delayed implementation pending legal and legislative challenges. The Senate’s rejection last week followed a similar House move earlier this year, though the White House has said President Biden plans to veto such congressional action.