US retail sales rose 0.5 per cent in February as auto sales rebounded from a weak showing in January, the government said today.
The advance in retail sales last month was largely in line with market expectations for a 0.6 per cent increase, but
sales excluding cars and parts rose just 0.4 per cent - half of Wall Street forecasts for a 0.8 per cent climb.
January retail sales had originally been reported as falling 0.3 per cent. The Commerce Department also revised December sales slightly higher to a 1.3 per cent gain from a 1.1 per cent increase.
Auto sales grew 0.7 per cent in February after a 2.1 per cent drop the month before, the Commerce Department said.
Economists had expected cars to be a weak spot in the report, after auto manufacturers reported sluggish sales in February.
The rebound in demand for autos and January's upward revision in overall sales suggest consumer spending started 2005 on a healthy note. February marked the third straight monthly gain in retail sales - and demand has not actually declined since August.
February's strength was broadly based, with higher sales at furniture, electronics, food, clothing, and general merchandise stores.