Sales at U.S. retailers rose in March for a ninth consecutive month, showing the improving job market is helping Americans cope with higher costs for fuel and food.
Purchases increased 0.4% following a 1.1% February gain that was larger than previously estimated, Commerce Department figures showed today in Washington. The median forecast of 82 economists surveyed by Bloomberg News was a 0.5% rise. Sales excluding automobiles and gasoline advanced more than projected.
Declining unemployment and a cut in payroll taxes for 2011 are helping sustain sales at chains like Macy’s Inc. and Saks Inc. At the same time, mounting gasoline and grocery bills are eroding confidence and pinching wallets, making it likely consumer spending, the biggest part of the economy, cooled in the first quarter from the final three months of 2010.
Retail sales were projected to rise after a 1% gain previously reported for February, according to the Bloomberg survey. Economists’ estimates ranged from a drop of 0.5% to a 2% gain.
Sales excluding automobiles and service stations climbed 0.6%, exceeding the 0.5% median forecast of economists surveyed. The February reading was revised up to 0.9% from a previously estimated 0.6% increase.
Ten of 13 major categories showed gains last month, led by the biggest increase in furniture demand since 2004 and the largest advance in sales of electronics in a year.
Filling station sales climbed 2.6%. Higher gasoline prices contributed to the projected gain in retail sales, which include purchases at filling stations and aren’t adjusted for inflation.
