US retail sales dip 0.1pc in February

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WASHINGTON, Mar 12 (AP): Retail sales fell in February for the seventh time in the past eight months. While the decline was less than expected, economists are still looking for continued weakness given the battering households are taking from a prolonged recession.

The Commerce Department reported Thursday that retail sales edged down 0.1 per cent last month, less severe than the 0.5 per cent drop that economists had expected.

The government also revised January's performance to show a 1.8 per cent rise, the biggest increase in three years and stronger than the 1.0 per cent gain that was originally reported.

Still, analysts are not looking for any sustained rebound in consumer spending for some time given the severity of the current recession, which has caused consumers to sharply retrench in the face of falling home and stock prices and soaring unemployment.

The weakness in February reflected a big 4.3 per cent plunge in sales of autos and auto parts, the biggest monthly drop since October.

Excluding the auto sector, retail sales would have risen by 0.7 per cent following an even stronger 1.6 per cent gain in January, an increase that was originally reported as a 0.9 per cent rise.