US consumers hit car dealer lots and stores in force in April to pushing retail sales to the biggest gain since last autumn, the US government reoorted today.
The Commerce Department said retail sales in April rose 1.2 per cent to a seasonally adjusted $300.27 billion and that sales outside of autos rose 1.0 per cent.
The gain in overall sales was the biggest since October, when sales surged 6.2 per cent as shoppers returned to malls after a lull caused by the September 11th attacks on New York and Washington.
The gains were much larger than had been expected by Wall Street economists. Analysts had expected smaller gains of 0.7 per cent and 0.4 per cent, excluding cars.
The advances may also ease concerns about the strength of the economy's rebound from the shallow recession it entered in 2001. Federal Reserve officials have been wary of raising interest rates to head off inflation until they are convinced the recovery has taken root firmly.
The Fed is expected to raise short-term interest rates once the economic recovery gains steam and inflation begins to pose a danger. However, the timing of that move has been pushed further back as the economy's rebound has been more moderate than originally expected.
The only retail categories to see declines in the month were sales at furniture outlets, food and beverage stores and sporting goods stores.