US retail sales strong in February

WASHINGTON, April 1 (Reuters): US retail sales increased by the most in seven months in February as motor vehicle purchases rebounded and temperatures warmed up, but surging gasoline prices because of war in the Middle East could crimp spending in the months ahead.

The Commerce Department's delayed report on Wednesday suggested that the economy was on solid footing before the US-Israel war with Iran. The conflict, which started at the end of February, has sent global oil prices surging more than 50 per cent, and the national average retail gasoline price this week topped $4 a gallon for the first time in more than three years.

A prolonged war and further increases in gasoline prices could offset some of the anticipated boost to consumer spending and the overall economy from tax cuts, economists warned. They expected the conflict to weigh on growth in the second quarter.