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Automobiles drive U.S. retail sales higher in March

Reuters  |  WASHINGTON 

By Lucia Mutikani

WASHINGTON (Reuters) - U.S. rebounded in March after three straight monthly declines as households boosted purchases of motor vehicles and other big-ticket items, suggesting consumer spending was heading into the second quarter with momentum.

The Commerce Department said on Monday increased 0.6 percent last month after an unrevised 0.1 percent dip in February. January data was revised to show sales falling 0.2 percent instead of the previously reported 0.1 percent drop.

Economists polled by had forecast rising 0.4 percent in March. in March increased 4.5 percent from a year ago.

Excluding automobiles, gasoline, building materials and food services, rose 0.4 percent last month after being unchanged in February. These so-called core correspond most closely with the consumer spending component of

They were previously reported to have risen 0.1 percent in February. Last month's pick-up in core will do little to change expectations of a sharp slowdown in consumer spending in the first quarter.

The dollar was trading weaker against a basket of currencies. Prices for U.S. Treasuries were marginally lower while U.S. stock index futures rose slightly.

Economists largely blame the weakness in at the start of the year on delays in processing tax refunds. Some also argue that income tax cuts which came into effect in January, only reflected on most workers' paychecks in late February.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, grew at a robust 4.0 percent annualised rate in the fourth quarter. It is expected to have slowed to below a 1.5 percent rate of increase in the first quarter.

Growth estimates for the January-March quarter are running below a 2 percent rate. The economy expanded at a 2.9 percent pace in the October-December quarter. The government will publish its advance estimate for first-quarter GDP growth later this month.

In March, auto sales jumped 2.0 percent, the largest increase since last September, after declining 1.3 percent in February. Receipts at service stations fell 0.3 percent, reflecting cheaper gasoline.

Sales at furniture stores climbed 0.7 percent while those at and appliance stores increased 0.5 percent. But sales at building material stores fell 0.6 percent last month.

Receipts at clothing stores dropped 0.8 percent while sales at increased 0.8 percent. Sales at restaurants and bars gained 0.4 percent. Receipts at sporting goods and hobby stores dropped 1.8 percent.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, April 16 2018. 18:40 IST
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