U.S. Retail Sales Surge 1.4% In March As Auto Sales Spike

(RTTNews) - Retail sales in the U.S. saw a sharp increase in the month of March, according to a report released by the Commerce Department on Wednesday.

The Commerce Department said retail sales shot up by 1.4 percent in March after inching up by 0.2 percent in February. Economists had expected retail sales to jump by 1.3 percent.

"This morning's retail sales came in better than expected, and while normally that would be a good thing for markets, it is very possible that consumers are front-loading their purchases and we may be seeing an artificial bump in sales, which the market will likely look through," said Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management.

The surge by retail sales partly reflected a significant rebound by sales by motor vehicles and parts dealers, which soared by 5.3 percent in March after tumbling by 1.6 percent in February.

Excluding the spike in auto sales, retail sales rose by 0.5 percent in March after climbing by 0.7 percent in February. Ex-auto sales were expected to rise by 0.3 percent.

The increase by ex-auto sales partly reflected substantial growth in sales by building materials and garden equipment and supplies dealers and sporting goods, hobby, musical instrument and book stores, which surged by 3.3 percent and 2.4 percent, respectively.

Sales by food services and drinking places also jumped by 1.8 percent during the month, while sales by gas stations plunged by 2.5 percent.

The report said core retail sales, which exclude automobiles, gasoline, building materials and food services, rose by 0.4 percent in March after surging by 1.3 percent in February.