United States retail sales unexpectedly rose in April as households bought automobiles, building materials and a range of other goods, pointing to underlying strength in the economy.
The Commerce Department said on Monday retail sales edged up 0.1 per cent after a revised 0.5 per cent decline in March.
Economists polled by Reuters had expected retail sales, which account for about 30 per cent of consumer spending, to drop 0.3 per cent last month after a previously reported 0.4 per cent decline in March.
So-called core sales, which strip out automobiles, gasoline and building materials and correspond most closely with the consumer spending component of gross domestic product, increased 0.5 per cent after nudging up 0.1 per cent in March.
The increase in core sales, coming on the heels of relatively strong job growth over the last three months, should help to ally fears of an abrupt slowdown in the economy early in the second quarter even as government austerity is starting to put a strain on manufacturing.