| U.S. retail sales post surprising gain in February |
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12/03/2010 18:14 (701 Day 10:13 minutes ago) | |||||
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The FINANCIAL -- Sales at U.S. retailers rose 0.3 percent unexpectedly in February, according to Commerce Department figures.
Sales for January were, however, revised down to only a gain of 0.1 percent from the previously reported 0.5 percent rise, Reuters reports. 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.
Motor vehicle and parts purchases fell 2 percent last month, likely reflecting vehicle recalls by Toyota Motor Corp, that have held back auto sales. They fell 1.5 percent in January, according to the same source. Excluding motor vehicles and parts, retail sales rose a bigger than expected 0.8 percent in February after rising 0.5 percent the prior month. Economists had expected a 0.1 percent gain.
A report last week that showed the economy lost fewer jobs than anticipated in February signaling employment is on the verge of accelerating, a development that would spur spending in coming months, Bloomberg reports. Macy’s Inc. was among retailers that beat estimates last month as customers overcame the weather to shop for Valentine’s Day gifts and spring merchandise, a sign the expansion is broadening beyond manufacturing.
“There is slow re-engagement from consumers,” Ethan Harris, head of North America economics at Bank of America- Merrill Lynch Global Research in New York, said before the report, as the same source informs. “As the economy slowly improves and the labor market stabilizes, people get a little less conservative in their spending.”
Filling station sales in February rose 0.3%, according to The Wall Street Journal. Merchants reported sales increases included restaurants and bars, 0.9%; electronic and appliance stores, 3.7%; food and beverage stores, 1.3%; clothing stores, 0.6%; general merchandise stores, 1.0%; sporting goods, hobby, book and music stores, 1.2%; building material and garden supplies dealers, 0.5% and furniture retailers, 0.7%.
Non-store retailers, oddly, were flat last month despite the snow that paralyzed the East and kept many consumers housebound, as the same source reports. The non-store category includes mail-order and Internet retailers. Health and personal care store sales fell 0.7%, the only category aside from autos to report declining sales in February.
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