US retail sales rose in February, the Commerce Department said. The gain was mostly confined to car dealers and department stores, raising questions about one of the economy's most resilient sectors, consumer spending.
The Commerce Department said retail sales rose 0.6% to a seasonally adjusted $327.17 billion in February, in line with Wall Street economists' expectations. But sales outside of cars were unexpectedly flat compared with January, defying economists' projections for a 0.5% gain.
However, January retail sales figures were revised up to a 0.2% increase, while sales excluding cars rose 1.2%. Previously, January sales had been reported down 0.3% overall and up a smaller 0.9% aside from cars.
Economists closely watch retail sales as major portion of consumer spending, which accounts for about two-thirds of total economic activity.
The 2.7% gain in February car sales was the biggest advance since March 2003, while a 1.2% gain in department store purchases was the biggest since July.
