U.S. retail sales bounced back during March and climbed more than expected as consumer spending picked up for cars, furniture, and building materials.
Retail sales increased by a seasonally adjusted 0.6%, the U.S. Commerce Department said today. Sales were stronger in February than earlier thought, falling a revised 0.8%. Demand was previously seen 1.4% lower.
Economists had called for a 0.4% increase in March retail sales.
March auto and parts sales increased by 1.6%, after falling 2.8% in February. Outside the auto sector, all other retail sales rose by 0.4% in March. Economists expected a 0.4% increase. Sales excluding autos fell 0.3% in February.
Gas station sales slipped by 0.1% last month after dropping 1.8% in February. Stripping away sales at gas stations, demand at all other retailers increased last month by 0.7%. Those ex-gas sales dropped 0.7% in February. And excluding autos and gasoline, all other retail sales went 0.4% higher in March. Demand excluding gas and autos fell by 0.1% in February.
Separately, the U.S. Labor Department reported Thursday that prices for imported goods declined 0.4% in March, suggesting that cheap products from overseas, outside of oil, continue to act as a restraining force on U.S. inflation. Import prices had fallen 0.5% in February. Petroleum import prices fell 0.7% last month.
Also Thursday, U.S. initial jobless claims increased by 12,000 to a seasonally adjusted 313,000 in the week ended April 8, the Labor Department said. The four-week moving average of initial jobless claims decreased last week by 1,500 to 307,500. That marks the seventh-straight week the four-week average has been above 300,000.
In another report, the Commerce Department said business inventories remained flat at a seasonally adjusted US$1.314 trillion, after a 0.6% advance in January. January inventories were originally seen up 0.4%. Wall Street was looking for stockpiles to move higher 0.3% during February.