Retail sales increased in February by the most in four months as Americans used more seasonable weather to buy cars, clothes and electronics.
Purchases climbed 1 percent after a revised 0.7 percent rise in January that was more than double the previous estimate, Commerce Department figures showed yesterday.
Job growth and lower taxes are helping Americans keep up spending after the biggest quarterly increase in four years. A separate report showed consumer sentiment fell to a five-month low in March, indicating surging gasoline prices may restrain the household demand that makes up 70 percent of the economy.
“Consumers are not yet showing any ill effects from rising food and energy prices,” said Julia Coronado, chief economist for North America at BNP Paribas, who correctly forecast the gain. “The numbers are consistent with consumers spending at a slower pace than the fourth quarter but still a solid pace.”