Retail Sales Make Largest Gain in 4 Months

The U.S. Commerce Department reports that total retail sales grew 1 percent in February, reflecting strong consumer spending and acceleration in economic growth in the first quarter.

The growth, which marks the largest increase since October and the eighth straight monthly advance, was in line with economists' expectations, according to Reuters.

January sales were revised up to a 0.7 percent increase from a previously reported 0.3 percent gain.

“Consumer spending is still expanding at a healthy pace,” says Gary Thayer, chief macro strategist at Wells Fargo Advisors in St. Louis. “That bodes well for the economy remaining on track for recovery.”

Excluding autos, sales rose 0.7 percent last month after gaining 0.6 percent in January, despite the rising cost of gasoline. Excluding gasoline, sales rose 0.9 percent after rising 0.6 percent in January.

Among retail sectors, sales of clothing rose 0.8 percent, while sporting goods, hobby, book and music stores reported increases of 1.3 percent. Sales at building materials and garden equipment suppliers increased 0.6 percent.