QUOTE OF THE DAY

“Ordinarily, rising gas prices take a toll on consumer confidence. At some point it may, but so far most measures of consumer sentiment continue to rise, as equity markets remain strong and the labor market continues to improve.”

Mark Vitner, senior economist at Wells Fargo

Americans stepped up spending on retail goods in February, evidence that a stronger job market is helping the economy.

Consumers bought more autos, clothes and appliances. They also paid higher prices for gasoline.

Retail sales increased 1.1 percent last month, the Commerce Department said Tuesday. It was the biggest gain since September. The government also revised up the previous two months.

Some economists noted that the February increase and the revisions could lead to faster economic growth. It could also put pressure on Chairman Ben Bernanke and the Federal Reserve to rethink its plan to hold interest rates at record lows until at least late 2014.

The Fed held a one-day policy meeting Tuesday and afterward announced its decision not to take further steps to boost the recovery.

“We believe that the consumer is in better shape than recent downbeat commentary from Fed Chairman Bernanke,” said John Ryding and Conrad Dequadros, analysts with RDQ Economics, in a note to clients.

One factor driving the retail sales increase was a 3.3 percent rise in gasoline sales last month. It was the biggest increase in nearly a year and reflected a surge in gasoline prices.

Consumers are “unfazed by higher gas prices,” said Jonathan Basile, an economist at Credit Suisse in New York, who correctly forecast the increase in spending. “This is a pleasant surprise on the overall picture for the economy. For the Fed, it’s steady as she goes. They will be encouraged, but there is still a long way to go.”

Retail sales increased a solid 0.8 percent after excluding gas station sales.

“Ordinarily, rising gas prices take a toll on consumer confidence,” said Mark Vitner, senior economist at Wells Fargo, in a note to clients. “At some point it may, but so far most measures of consumer sentiment continue to rise, as equity markets remain strong and the labor market continues to improve.”

One reason why consumers may have continued to spend despite the increased pressure at the pump was the unusually warm weather, which the Energy Information Administration expects to knock off $629 from the average natural-gas heating bill this winter.

Auto sales rose 1.6 percent. Department stores increased 1.5 percent, the largest gain since November 2010. Sales at appliance and electronics stores climbed 1 percent.

The February gain pushed total sales to a record $407.8 billion. That’s 20.1 percent higher than the recession low hit in March 2009.

The increase comes after the best three months of hiring in two years. The economy has gained 734,000 jobs since December. That’s lowered the unemployment rate to 8.3 percent.

The government report reflected private data released earlier in the month. U.S. automakers reported having the best annual sales pace in four years in February, despite the surge in gasoline prices.

Retail merchants reported a 6.7 percent increase in sales in February compared with the same month a year ago, according to the International Council of Shopping Centers’ tally of 21 retailers.

Economists are concerned that consumers could limit spending this year if their wages continue to lag inflation. And rising gasoline prices could put further strains on household budgets.

The average price for a gallon of gas was $3.80 on Monday. That’s 30 cents more than consumers paid one month ago. In Arkansas, the average price of a gallon of gasoline Tuesday was $3.599, according to AAA.

Job openings in the U.S. were little changed in January, capping the strongest two months in more than three years, a signal businesses remain confident about the economic expansion.

The number of positions waiting to be filled totaled 3.46 million, down from a revised 3.54 million in December that was higher than previously estimated, the Labor Department said Tuesday in a statement posted on its website. The back-to-back reading was the highest since mid-2008.

Better job prospects may lure more people into the labor market, helping restore some of the 5.3 million jobs yet to be recovered after the recession. February marked the third consecutive month with payroll growth above 200,000, Labor Department data showed last week.

The Commerce Department said Tuesday that business stockpiles rose 0.7 percent in January after a 0.6 percent gain in December. Sales increased 0.4 percent in January after a 0.9 percent December sales gain.

The increase pushed stockpiles up to $1.57 trillion, 19.1 percent above the recession low hit in September 2009.

Companies are building up their stockpiles again after cutting them over the summer amid recession fears. Higher inventories require more production, which boosts economic growth. It also suggests companies expect more sales.