Retail Sales Rebound in March, Rise 2.1%

Retail sales in the United States rose 2.1% during March, the Commerce Department said Friday.

The report came on the same day that the Labor Department said that producer prices rose during the third month of the year.

Retailers saw an uptick in business during March as consumers took advantage of promotions on automobiles and went to home improvement outlets after the snows of winter melted, analysts told Bloomberg.

Excluding auto sales, retail sales rose 1.1%. New car and light truck sales rose to an annual rate of 16.2 million from a rate of 15.4 million in February.

Retail sales in February were revised to a 1.3% decline from a decline of 1.6%. Ex-auto retail sales were down 0.6% from a 1% decline, Commerce said.

Producer prices rose 1.5% during March after a 1% gain in February. The core producer price index rose 0.7% after a 0.5% decline the previous month. The core PPI excludes the prices of volatile goods like food and energy.

PPI is a closely watched indicator of inflation. Analysts told Bloomberg that the larger than expected rise in PPI was due primarily to rising energy prices. Since beginning of the war in Iraq on March 20, however, oil prices have declined sharply, giving analysts reason to be positive about the economy going forward, Bloomberg said.