Consumer activity in the US soared last month as shoppers returned to the malls after storms in February kept many people away. Retail sales rose 2.1pc in March from the previous month, the Commerce Department said today, more than triple the 0.6pc rate that had been forecast. The increase was the largest since October 2001, when sales surged after car dealers offered zero percent financing in a bid to boost demand for their products after September 11.
The rise in March retail activity was also led by auto sales, which climbed 5.3pc after falling 3.7pc in February. Although the larger than expected increase may be a blip following the 1.3pc slump in sales in February during the storms on the east coast, the dollar gained sharply on the news, sending the euro down 0.80pc to USD1.0700 this afternoon. Wall St futures also spiked higher following the report, which will be followed later this afternoon by the University of Michigan's preliminary consumer sentiment report for April. The dollar also gained on sterling, pushing the pound down to USD1.5669 from USD1.5725 earlier. //www.fxcentre.com