-Chris Williamson, chief economist at Markit
US retail sales rebounded in March as consumers stepped up purchases of cars and other goods, adding to signs that a precipitous slowdown in growth in the beginning of the year was temporary. Sales of US retailers rose 0.9% to a seasonally adjusted $441.4 billion in the reported month, the Commerce Department said. That was the biggest monthly increase in a year, but against economists' expectations for a 1% gain. Higher sales were largely driven by car purchases, which increased 2.7% last month. Excluding autos, core retail sales rose 0.4% in March, after remaining steady in February and dropping 1.2% in January. Compared to a year earlier, overall retail sales increased 1.3% in March. Consumer spending accounts for more than two-thirds of US GDP. Last month, Americans spent more on building supplies, garden equipment, furniture, and clothing and accessories.
In a separate report, the Labor Department said US producer price index for final demand ticked up 0.2% last month, with increasing prices for goods making up more than half of the gain. The PPI had decreased 0.5% in February. Measured on an annualized basis, producer prices slid 0.8%, the biggest year-over-year drop since records began in 2009, after falling 0.6% in February. Core PPI rose 0.2% after being unchanged in February and was up 0.8% in the 12 months through March.
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