US retail sales rose in March thanks to a strong pickup in automotive purchases, according to a US government report.

The reported decline in February's sales was also revised down to 0.8 per cent from what was previously believed to have been a fall of 1.4 per cent.

The Commerce Department said that overall retail sales rose by 0.6 per cent last month.

Excluding auto sales, sales rose by just 0.4 per cent in March, while sales of cars and parts jumped by 1.6 percent, rebounding from a previous 2.8 per cent drop in February.

Cars in March sold at an annual rate of 16.6 million, the same as February's rate, according to industry data seen by Bloomberg.

An improving labour market triggered the demand for new cars, as well as building materials and furniture, the report said.

Despite concern that consumer spending may begin to slow as a result of rising energy costs, US retail sales throughout the first quarter of 2006 have been reasonably positive, with the performance of the automotive sector proving a welcome boost.


Ÿ Adfero Ltd