March Retail Sales Rise 0.8%, 5th Straight Increase

Retail sales, spurred by gains at department stores and auto showrooms, rose a strong 0.8%in March, the fifth consecutive increase, the government said today.

The Commerce Department said retail sales rose a seasonally adjusted $1.1 billion to $130.7 billion.

Sales were strong in all categories except furniture stores and restaurants, and were well above expectations. Most economists before today predicted an increase of 0.2% to 0.3%.

The March increase came atop a 0.6% gain in February, revised upward from the 0.4% estimate released a month ago.

The latest rise was the strongest since a 1.1% increase in December. Ever since the October stock market crash, economists have watched retail sales closely for signs that the consumer sector of the economy would weaken.

But more recently, some analysts have raised fears that too much consumer demand could re-fire inflation and lead to higher interest rates.

Much of the strength in March came from sales at department and other general merchandise stores. Boosted by an earlier-than-usual Easter, their sales rose 1.6% following a 2.6% decrease in February.

Auto sales rose 0.9% following a 2.0% increase a month earlier.

Sales of all durable goods, items expected to last three or more years, were up 0.5% while non-durable goods were up 1.0%.