Sales at Retailers Rise 1.4%

Retail sales jumped 1.4% in April, the strongest showing in six months, as consumers streamed back into auto showrooms and shopping malls in what was viewed as a signal that this year’s economic slowdown was short-lived.

The Commerce Department said Thursday that the increase in sales showed widespread strength across a number of retail categories. The rise came after a 0.4% advance in March, revised upward from an initially reported increase of 0.3%.

The poor showing in March -- along with a number of other indicators flashing weakness during that month -- had raised concerns that the economy, hit by a surge in energy prices, could be entering another period of weakness similar to what Federal Reserve Chairman Alan Greenspan had called a “soft patch” in 2004.

But April has been looking better than March, with reports of a better-than-expected performance on trade and a net gain of 274,000 jobs in April as well as the jump in retail sales.

“The soft patch isn’t looking as soft as we thought it was,” said David Wyss, chief economist at Standard & Poor’s.

Nariman Behravesh, chief economist at consulting firm Global Insight, said that because of problems adjusting for an early Easter, the sales weakness in March and the strength in April were probably both overstated.

In another report, the number of U.S. workers filing new claims for unemployment benefits rose by 4,000 to 340,000 last week, the highest level in a month. The less-volatile four-week moving average for initial claims rose by 2,000 to 324,000.

Even with the increases, the claim numbers remained at levels indicating that the labor market was continuing to improve, analysts said.

The retail sales rise last month was the biggest since a 1.8% jump in September and was led by a 2.5% rise in auto sales.

Sales at clothing stores rose 2.8% in April after a 2.2% drop in March. It was the biggest increase since a 5.2% surge in October 2002.

Department store sales rose 1.3% after a 2% decline in March.