Retail Sales Up Slim 0.1% in March After Sharp Feb. Decline

Retail sales, held back by sluggish business at car dealerships and department stores, edged up a slim 0.1% in March after posting a sharp decline during the previous month, the government reported today.

The Commerce Department said sales rose to a seasonally adjusted $139.42 billion last month after falling 0.6% in February and rising 0.6% in January. The figures are not adjusted to exclude the effects of rising prices.

For the third straight month, overall sales in March were held down by a decline in spending on autos, which account for almost one-fourth of the retail total. Car sales were down 0.1% in March after declining 2.5% in February and 1.9% in January.

It was the first time that auto sales had declined for three straight months since July through September, 1984, when the decreases were more pronounced.

Car makers in recent weeks have launched a new round of incentive programs in hopes of luring customers back to showrooms during the prime spring selling season despite higher interest rates for loans.

Closely Watched

Excluding the automotive category, retail sales last month still were up just 0.2% after holding virtually even during February and rising 1.4% in January.

Retail spending accounts for about one-third of overall economic activity and is closely watched as a measure of the economy’s health.

Many analysts are expecting an economic slowdown this year in response to an ongoing campaign by the Federal Reserve Board to push up interest rates and thus dampen demand and restrain inflation.

In the key category of department and other general merchandise stores, sales fell 1.2% in March to $15.6 billion after declining 1.5% in February.

In a separate report earlier this month, the nation’s big retailers reported mixed March results, with giant Sears, Roebuck & Co. reporting strong sales under its new competitive pricing policy while other chains were less pleased with last month’s showing.

‘Big Ticket’ Items Down

Overall, sales of durable goods, “big ticket” items expected to last three or more years, were down 0.2% last month after plunging 1.7% in February.

Sales of non-durable goods, meanwhile, rose 0.3% in March after climbing 0.2% during the previous month.

Among the categories of goods to report sales increases last month were: food and grocery stores, up 0.2%; gasoline service stations, up 0.5%, and bars and restaurants, up 0.5%.

Categories posting declines included building and hardware stores, down 1.9%; furniture stores, down 0.2%; clothing and accessory stores, down 0.4%, and drugstores, down 0.2%.

For the first three months of the year, overall retail sales were up 5.7% from the same period in 1988.