US retail sales jump in February

US retail sales recorded their largest gain in five months in February as Americans snapped up motor vehicles and bought a range…

US retail sales recorded their largest gain in five months in February as Americans snapped up motor vehicles and bought a range of goods even as they paid more for petrol, government data showed today.

Total retail sales increased 1.1 per cent, the Commerce Department said, after an upwardly revised 0.6 per cent rise in January.

Economists polled by Reuters had forecast retail sales rising 1.0 per cent after a previously reported 0.4 per cent gain in January.

Sales last month were buoyed by a 1.6 per cent rise in sales of motor vehicles, reflecting pent-up demand by households and growing confidence in the economy as job creation speeds up.

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A devastating earthquake and tsunami in Japan caused disruptions to auto production last year and left dealers without models that consumers wanted to buy.

Excluding cars, retail sales advanced 0.9 per cent last month, adding to January's upwardly revised 1.1 per cent gain.

Consumers bought motor vehicles even as they paid more for gasoline at the pump. Gas prices rose 20 cents last month, according to government data.

Sales at petrol stations surged 3.3 per cent, the biggest gain since March last year, after rising 1.9 per cent in January. Excluding cars and petrol, sales rose 0.6 per cent in February after increasing 1.0 per cent the prior month.

Outside cars and gas stations, details of the report were fairly upbeat, suggesting recent solid gains in employment were supporting consumer spending.

Last month, clothing store receipts jumped 1.8 per cent, the largest increase since November 2010, while sales at building materials and garden equipment suppliers advanced 1.4 per cent.

Unseasonably mild weather has boosted the volume of traffic to shopping malls even though retailers have had to offer huge discounts to clear shelves of winter clothing and other merchandise.

So-called core retail sales, which exclude cars, gasoline and building materials, were up 0.5 per cent after advancing 1.0 per cent in January.

Core sales correspond most closely with the consumer spending component of the government's gross domestic product report.

Sales at restaurants and bars rose 0.8 per cent, while receipts at sporting goods, hobby, book and music stores increased 1.0 per cent. Sales of electronics and appliances rose 1.0 per cent, while receipts at furniture stores fell 1.2 per cent.

Reuters