Retail sales in US rise

WASHINGTON, May 12 (Bloomberg): Sales at U.S. retailers rose in April, reflecting gains at service stations and grocery stores as fuel and food prices climbed. The 0.5 percent increase was the smallest since July and followed a 0.9 percent March gain that was more than double the previous estimate, Commerce Department figures showed today in Washington. The median forecast of economists surveyed by Bloomberg News called for a 0.6 percent rise. Sales excluding automobiles and gasoline increased 0.2 percent. Mounting bills for gasoline and groceries are leaving Americans with less money for other purchases. At the same time, chains like Limited Brands Inc. and Macy's Inc. (M) topped analysts' sales estimates last month, a sign the improving job market will prevent consumer spending, which accounts for about 70 percent of the economy, from faltering. "Consumer resilience has begun to fray a little because of higher gas prices," said Yelena Shulyatyeva, an economist at BNP Paribas in New York, who correctly forecast the gain in retail sales. "Consumers are spending little by little. We expect the labor market to continue its recovery." Other reports showed the number of workers filing claims for unemployment insurance payments dropped less than forecast last week and wholesale prices climbed more than projected in April. Applications for jobless benefits decreased 44,000 in the week ended May 7 to 434,000, Labor Department figures showed. Economists forecast 430,000 claims, according to the median estimate in a Bloomberg survey. The producer-price index rose 0.8 percent compared with a 0.6 percent median estimate of economists surveyed, other figures from the Labor Department also showed. The so-called core measure, which excludes volatile food and energy costs, increased 0.3 percent, more than projected. Stock-index futures held earlier losses after the reports. The contract on the Standard & Poor's 500 Index maturing in June fell 0.5 percent to 1,332.2 at 8:52 a.m. in New York. Treasury securities fell, sending the yield on the benchmark 10-year note up to 3.17 percent from 3.16 percent late yesterday. Retail sales were projected to rise after a 0.4 percent gain previously reported for March, according to the Bloomberg survey. Estimates of the 78 economists surveyed ranged from gains of 0.2 percent to 1.2 percent.