Auto rebound gives US retail a bounce in March

Higher spending could support GDP growth in Q1

WASHINGTON, United States, April 16, (AFP): Auto sales surged in March, sending the US retail sector higher for the first time in four months, helped by increased spending in other areas, according to government data released on Monday.

Consumers snapped up electronics, shopped online and frequented bars and restaurants, but sales sagged at department stores, gas stations and clothing outlets, according to the Commerce Department report.

The higher spending could support GDP growth in the first quarter, which is expected to be sluggish.

Retail spending in the world’s largest economy gained 0.6 per cent for the month, rising to US$494.6 billion, overshooting economists’ expectations and marking the biggest gain since November.

The result put sales up 4.5 per cent over the same month last year, pointing to a trend of steady overall increases.

In this file photo taken on Jan 11, 2016 Chevrolet unveils the new 2017 Cruze Hatchback during their press conference at the 2016 North American

International Auto Show in Detroit, Michigan. (AFP)

Auto sales gained two per cent, the biggest increase in six months.

Excluding the volatile auto sector, sales were up 0.2 per cent, matching an analyst forecast and the same increase recorded in February. Excluding both autos and gasoline, sales rose 0.3 per cent.

Personal consumption and retail spending had disappointed analysts in recent months, feeding expectations the US economy will see slower growth in the first quarter of the year.

Sales at home furnishing stores rose 0.7 per cent, and were up 0.5 per cent at electronics stores. Bars and restaurants gained 0.4 per cent.

Non-store retailers like Amazon continued to gain, rising 0.8 per cent for the month, putting them up nearly 10 per cent over March of last year.

But department stores fell 0.3 per cent, continuing a long-running decline.