US retail sales rose less than expected in February according to a report that added to doubts about the strength of the US economic recovery.
Retail sales edged up a seasonally adjusted 0.3 per cent last month to $296.41 billion reversing a matching 0.3 per cent decline in January.
Sales excluding automobiles rose 0.2 per cent in February after a 1.2 per cent surge in the prior month. Sales of vehicles and parts rose 0.4 per cent in February.
Economists had forecast a 0.9 per cent gain in overall retail sales and 0.5 per cent rise excluding automobiles.
Spending by consumers fuels two-thirds of total US economic activity so moderate gains in retail sales imply a restrained pace of expansion.
One of the strongest categories in the report was sales at furniture and home furnishing stores, which climbed 1.5 per cent in February after a 0.3 per cent rise in January. The gain was consistent with a trend of robust home sales as new home-buyers typically spend heavily on furnishings after they move in.
Sales at electronics and appliance stores also increased strongly in February. They were up 1.1 per cent, bouncing back a 3.2 per cent drop in the prior month.
But clothing sales slowed down from the heady pace they had in January. Purchases at clothing stores eased 0.1 per cent in February after a 1.4 per cent rise in January.
The slight 0.4 per cent rise in vehicles and parts sales in February came after a plunge of 4.6 per cent the previous month. The sharp January decline came on the heels of a huge car-buying spree in late 2001 which had been fueled by zero-per cent financing incentives.