Washington, April 12 (BridgeNews) - Drops in auto sales and other durable goods led to an unexpected 0.2% decline in retail sales for March, the Commerce Department said Thursday. Excluding autos, sales of which are volatile, sales slipped 0.1%. Consumers, uncertain about the future course of the economy, have been reluctant to spend on big-ticket items. Analysts had expected overall sales to rise 0.1% and sales ex-autos to be up 0.2%. February sales were revised to unchanged after being reported down 0.2% in the initial report; excluding autos, sales were revised to down 0.2% from the 0.3% drop initially reported. Automobile sales fell 0.8% in March, confirming reports from the leading car producers which showed sales falling for the month after advancing a revised 0.3% in February. Sales of durable goods--those designed to last more than three years and so most sensitive to interest rates because they are usually bought with borrowed money--dropped 0.7%. In February, durable good sales climbed a revised 0.5%. Excluding autos, durable goods sales fell 0.5% in March, after moving up a revised 0.8% in February. Retail activity at the nation's department stores rebounded, climbing 0.4% in March, after slipping a revised 1.1% the previous month. Building material sales dropped 1.2%, after jumping a revised 2.0% in February. Furniture sales fell 0.7%, after a revised 0.2% decline in February.
NON-DURABLE GOODS
Retail sales in the larger non-durable goods sector inched up 0.1%, after falling a revised 0.4% in February. Sales at gasoline stations fell 2.0%, extending February's revised 0.5% decrease. Sales at restaurants and bars rose 0.6%, reversing the 0.8% drop in February. Drug stores saw their sales jump 1.5% in March after rising 0.9% the prior month.
WHAT WAS EXPECTED
The March sales data on the low end of the range of private estimates for overall sales, which ran from down 0.2% to up 0.4%. Non-automotive sales were seen in a range from down 0.1% to up 0.3%. More
OTHER DETAILS, HISTORICALS
--March retail sales fell to a seasonally adjusted $274.093 billion. However, sales were up 1.9% versus a year earlier. --Excluding the automotive sector, sales stood at $207.180 billion. Non-auto sales were 2.7% above their year-earlier level. End Copyright 2001 Bridge Information Systems Inc. All rights reserved.