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Stores see slight improvement in sales

Retail sales were moderately better than expected for March.

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By Ben Rooney, CNNMoney.com staff writer

When I travel, I expect my flight will be…
  • On time
  • Delayed
  • Overbooked
  • Canceled

NEW YORK (CNNMoney.com) -- Retail sales were slightly better than expected in March, although high gas prices and a slowing economy continued to erode demand for products.

The Commerce Department reported Monday that total retail sales rose 0.2%, compared to a revised 0.4% decrease in February.

In February, overall sales were originally reported to have decreased 0.6%.

Economists surveyed by Briefing.com expected a 0.1% gain in retail sales for the month.

Stripping out volatile auto sales, sales rose 0.1% compared to a 0.2% gain in February, but the increase was boosted by a 1.1% jump in gasoline station purchases.

Economists had anticipated a 0.2% gain in the measure.

Excluding both auto and gasoline sales, core retail sales showed an anemic 0.1% gain.

"There's no question the trend in core sales is slowing sharply, led by housing-related sectors, and there is every reason to expect outright declines over the next few months as the plunge in consumers' confidence feeds through," said Ian Shepherdson, chief U.S. economist at High Frequency Economics.

Consumers cut back spending across a wide spectrum of categories. Among the weakest areas: Sales of building supplies fell 1.6%, clothing sales fell 0.5%, furniture purchases fell 0.3%, while sales of consumer electronics fell 0.4%.

Elsewhere, general merchandise sales declined 0.6% while department store sales were unchanged for the month.

Just a handful of categories saw surprising gains last month, including a 0.2% rise in auto sales. Online merchants reported a 2.1% increase, while sellers of sporting goods, books and music saw a 1.4% rise in sales.

Monday's report is "very much consistent with recession," according to Michael Niemira, chief economist with the International Council of Shopping Centers.

The nation's economy has been pushed to the brink of recession as American households are being pressured by record high gas prices and a severe downturn in the housing market.

In response, the government launched an economic stimulus plan which includes income tax rebates aimed at boosting consumer spending. The first of the rebate checks are due to arrive in May.  To top of page

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