2018.04.1700:36:00UTC+00U.S. Retail Sales Bounced Back in March

U.S. consumer rebounded in March and purchased more cars, furnitures and appliances following three months of lower sales.

According to the Commerce Department, retail sales increased 0.6 percent in March, the biggest rise since November. Auto sales bounced two percent, the most in six months. So-called retail control-group sales, which are used to calculate gross domestic product and exclude food services, auto dealers, building-materials stores and gasoline stations, gained 0.4 percent.

Retail sales fell during the first two months of 2018 as consumers pulled back following heavy spending in the winter holidays. That supports the Federal Reserve's view that such weakness was transitory, as well as the central bank's outlook for two or three more interest-rate increases this year following a quarter-point hike in March.

Economists predict that healthy consumer confidence, steady job gains and the impact of tax cuts will boost strong spending growth in the months ahead.

Eight of 13 major retail categories showed growth. Sales at health and personal-care stores climbed 1.4 percent, the most in two years. Auto sales increased two percent, the most since September; a report last week showed purchases of cars and light trucks rose to a 17.4 million annualized rate in March, the fastest this year.

Consumer optimism has held at relatively high levels due to factors including job-market strength, rising wages and lower taxes. Refunds from 2017 returns may have also given retail sales a boost in March.