13 March 2014, 18:03  Retail sales in the U.S. rise

Retail sales in the U.S. rose by slightly more than expected in the month of February, according to a report released by the Commerce Department on Thursday. The report said retail sales rose by 0.3 percent in February following a revised 0.6 percent drop in January. Economists had expected sales to edge up by 0.2 percent compared to the 0.4 percent decrease originally reported for the previous month. Paul Dales, Senior U.S. Economist at Capital Economics, said, "It's of some comfort that sales rose in February after falling in both December and January. But if the bad weather was no longer an issue, sales would have rebounded much more rapidly." The stronger than expected retail sales growth was partly due to a substantial rebound in sales by sporting goods, hobby, book and music stores, which jumped by 2.5 percent in February after plunging by 4.8 percent in January. Sales by non-store retailers and health and personal care stores also saw notable increases, with both rising by 1.2 percent. The report also showed that sales by motor vehicle and parts dealers edged up by 0.3 percent in January after tumbling by 2.2 percent in January. Excluding the modest increase in auto sales, retail sales still increased by 0.3 percent in February compared to a 0.3 percent decrease in the previous month. Core retail sales, which exclude auto, gasoline, and building materials sales, also rose by 0.3 percent in February following a 0.6 percent decrease in January. "Looking ahead, there is clearly scope for more of the demand pent during the bad weather to be released," Dales said. "And in the meantime, at least spending on services is being boosted by more demand for heating and previously uninsured people taking advantage of the health insurance policies they have been enrolling in since October," he added. "As such, the Fed will stick to its existing tapering timetable."

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