Retailers in the U.S. reported an increase in sales during the last month of the first quarter for the ninth month in a row, although surging gasoline prices contributed to a slowing rate of expansion, according to Rueters. On Wednesday, the Commerce Department reported that total retail sales in the U.S. increased by 0.4% in March after a 1.1% gain the month prior. The increase was the smallest in nine months, and came in just short of economists’ forecast for a 0.5% expansion. However, the report also revised upwards overall retail sales figures for both January and February.
The upwards revision of previous data offset the slowdown in March, and Michelle Girard of RBS said the figures “suggest that real personal consumption expenditure in the first quarter will not decelerate as much as feared.” A 2.6% increase in gasoline sales was behind the increase in overall sales, with retail sales excluding gas adding only 0.1% in March from a 0.9% gain previously. Meanwhile, a separate report from the Commerce Department showed that business inventory growth slowed in February to a 0.5% increase from a 1% gain the month before. The gain was less than forecast and could lead to a decrease in expectations for first quarter economic growth.
