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Retail sales rebound in February

WASHINGTON — U.S. retail sales bounced back in February after suffering a steep decline during a bitterly cold January. Shoppers spent more on autos, clothing and furniture.

The Commerce Department said Thursday that seasonally adjusted retail sales rose 0.3 percent in February. Spending had fallen 0.6 percent in January, revised down from the 0.4 percent decline initially reported. Retail spending also fell 0.3 percent in December.

The increase suggests that consumer spending has started to recover after being tempered by snowstorms and freezing temperatures that blanketed much of the country.

Auto sales rose 0.3 percent. Excluding volatile spending on autos, gas and building supplies, retail sales increased 0.3 percent from December.

Last month's rebound almost brought retail spending back to its December levels. Purchases at restaurants, online retailers and department stores also improved, although the economy has yet to fully shake off winter's impact. Many economists came into 2014 projecting that stronger consumer spending would cause growth to accelerate, only to find those estimates frustrated by freezing weather across the country.

Over the past 12 months, retail sales have risen a modest 1.5 percent.

But the improvement in retail spending has not led to more work at stores. Retailers cut 4,100 workers in February. The losses were concentrated in electronics, department, sporting goods, hobby, book and music stores.

Separate sales reports by auto companies indicate that consumer demand may improve in the spring. Consumers bought just under 1.2 million new cars and trucks in February, according to motor vehicle makers. That follows a 3 percent drop in January — the first year-over-year decline since August 2010.

General Motors, Ford and Toyota each reported sales declines for February. The country's top three automakers said sales began to recover in the second half of last month, when the weather improved.

So far this year, new vehicle sales have been on pace to reach a little more than 15 million for the year. Last year, the industry sold 15.6 million cars and trucks. Economists forecast that auto purchases will approach 16 million this year.

Markets plunge

The Dow Jones Industrial Average fell 231.19 points, or 1.4 percent, to 16,108.89 on Thursday, its biggest decline in six weeks, as investors reacted to discouraging economic reports from China and intensifying tensions in Ukraine. The Standard & Poor's 500 index fell 21.86 points, or 1.2 percent, to close at 1,846.34, while the Nasdaq composite dropped 62.91 points, or 1.5 percent, to 4,260.42.

Retail sales rebound in February 03/13/14 [Last modified: Thursday, March 13, 2014 6:53pm]
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