Official figures show that sales at US retailers rose by slightly less than expected in March as rising petrol prices pulled spending away from other areas. Sales at car dealerships also fell, pointing to slower consumer spending in the first quarter.
Total retail sales increased 0.4%, a ninth straight month of gains, the Commerce Department said. March's rise was the weakest since June when sales fell 0.3%. February sales were revised up to a 1.1% gain from a previously reported 1% rise.
Sales at petrol stations, which accounted for about 10.7% of overall retail sales last month, increased 2.6%. Excluding petrol, retail sales were up a scant 0.1% in March after a 0.9% rise the previous month.
Compared with March last year, sales were up 7.1%. Consumer spending, which accounts for 70% of US economic activity, is expected to slow after growing at a brisk 4% annual rate in the fourth quarter of 2010, as rising petrol and food costs eat into household budgets.
Sales excluding cars rose 0.8% last month after increasing 1.1% in February, a touch above economists' expectations. Auto sales fell 1.7%. So-called core retail sales - which exclude cars, petrol and building materials - rose 0.4% after a 1.1% gain in February.
