US retail sales rose unexpectedly last month despite heavy snow storms and a drop in vehicle purchases by consumers worried by Toyota recalls. The figures boosted hopes of a sustainable economic recovery.
Sales rose 0.3% in the month, the Commerce Department said. January sales, however, were revised down to a gain of 0.1% from the previously reported 0.5% rise. Analysts had expected sales to slip 0.2% last month. Compared with February last year, sales were 3.9% higher.
Sluggish consumer spending had fed worries that the US economy's recovery from the worst downturn in seven decades could falter when support from government stimulus measures and a swing toward inventory building by businesses disappears. High unemployment has squeezed household incomes, acting as a restraint on spending.
Motor vehicle and parts purchases fell 2% last month after a 1.5% January drop, probably reflecting a drop in demand by consumers nervous about vehicle recalls by Toyota. Excluding motor vehicles, retail sales rose a bigger than expected 0.8%, building on a 0.5% January rise.
Core retail sales, which exclude cars, petrol and building materials, increased 0.9% after rising 0.6% in January.
Meanwhile, a separate survey of US consumer sentiment declined slightly in early March, with Americans less positive about the job outlook, according to the University of Michigan.
US household wealth's first rise since 2007
American household wealth jumped in 2009 for the first time since a brutal recession struck the country, underscoring the impact of an economic recovery, data from the central bank showed last night.
The net worth of US households - the difference between their assets and liabilities - stood at $54.18 trillion at the end of last year, a 5.4% increase from the previous year, the Federal Reserve said.
The last time Americans saw their net worth increase on an annual basis was in 2007, when the US plunged into recession in December of that year following a home mortgage meltdown. Most of the rise in net worth stemmed from easing household debt.
US household debt fell 1.7% in 2009 - the first annual drop since the Fed began gauging household borrowing data in 1946. It marks a big change from the massive borrowing in the run up to the recession.
