Retailers in the U.S. posted the largest increase in sales in four months during the second month of the year, pointing to strong consumer spending in the first quarter, according to Reuters. On Friday, the Commerce Department reported that total retail sales in the U.S. added 1.0% during February, quickening from a 0.7% revised expansion during January and matching expectations from economists. The gain was the largest since October and marked the eight consecutive monthly advance, moving sales up 8.9% year-over-year.
The strong retail performance came despite a 3.7% surge in gasoline prices, and Gary Thayer of Wells Fargo Advisors said, “Consumer spending is still expanding at a healthy pace,” continuing, “That bodes well for the economy remaining on track for recovery.” A separate report from Thomson Reuters/University of Michigan showed that the index for consumer sentiment fell almost ten points to 68.2 in March, moving to the lowest level since October and surprising economists who had expected a one point fall. The gauge of consumer expectations dropped over 13 points to 58.3, while the sub-index of current conditions was down much less sharply.