Sales at U.S. retailers rose unexpectedly in February despite a drop in vehicle purchases and inclement weather that was expected to curtail shopping, bolstering hopes of a sustainable economic recovery
Total retail sales rose 0.3 percent, the Commerce Department said Friday, as consumers bought an array of goods from necessities to luxury items.
Sales for January were, however, revised down to only a gain of 0.1 percent from the previously reported 0.5 percent rise.
Analysts polled by Reuters had forecast retail sales slipping 0.2 percent last month. Compared to February last year, sales were 3.9 percent higher.
"I think it keeps hinting that the U.S. recovery is intact and ongoing. There's been a lot of worry about how the economy will transition from government spending to consumer spending and we're starting to see some evidence of that," said Camilla Sutton, a senior currency strategist at Scotia Capital in Toronto.
Consumer spending has been sluggish as high unemployment squeezes household income, leading to worries that the economy's recovery from the worst downturn in seven decades could falter when support from government stimulus and the inventory swing disappears.
Officials from the Federal Reserve meet next week and are expected to hold overnight interest rates in a range of zero to 0.25 percent and maintain a pledge to keep them ultra-low for an "extended period" to try to foster a stronger recovery.
Core retail sales, which exclude autos, gasoline and building materials, increased 0.9 percent after rising 0.6 percent in January. Core sales correspond most closely with the consumer spending component of the government's gross domestic product report.
Sales of building materials and garden equipment rose 0.5 percent, defying expectations of a decline following severe winter storms that slammed parts of the country last month.
Gasoline receipts rose 0.3 percent, while sales at sporting goods, hobby and book stores jumped 1.2 percent after falling 0.6 percent in January
