Washington, DC, Apr. 13--U.S. shoppers turned out in force in March, a Commerce Department report on Tuesday showed, pushing retail sales to their strongest gain in a year.
The Commerce Department said retail sales rose an unexpectedly sharp 1.8% in March to a seasonally adjusted $333.01 billion, the biggest gain since March 2003. Excluding cars and trucks, sales gained 1.7%, that category's best performance since March 2000. Wall Street analysts had expected both figures to advance a smaller 0.6%.
February sales were also revised upward, to a 1.0% increase from the previously reported 0.7% gain. February ex-auto sales were revised to a 0.6% increase from a previously reported flat reading.
The figures show the economy kept up its momentum in the first quarter of the year. Economists closely track retail sales, which make up about 36% of overall consumer spending, the driver of two-thirds of U.S. economic activity.
Sales at auto dealerships grew 2.1%, after a 2.3% gain the prior month, accounting for some of the overall gain. But sales were also strong among many other retailers. Purchases at garden and home improvement stores surged 10.6%, the biggest monthly rise since the Commerce Department began tracking the data in their current form in 1992.
