WASHINGTON (Reuters) – Sales at U.S. retailers rose more strongly than expected in March and firming domestic demand prompted businesses to rebuild inventories to a seven-month high in February, suggesting a broadening of the economic recovery.
The retail sales report on Wednesday painted a picture of consumer defiance in the face of high unemployment and tight access to credit, and offered hope the manufacturing-led recovery would continue when the boost from government stimulus and the rebuilding of inventories ebbs.
"Self-sustained recovery are the key words we are all looking for right now and today's retail sales report is a step in that direction," said Robert Dye, a senior economist at PNC Financial in Pittsburgh.
Total retail sales jumped 1.6 percent, the largest increase since November as consumers stepped up purchases of vehicles and a wide range of goods, the Commerce Department said. January sales were revised up to a 0.5 percent rise from 0.3 percent.
The data provided a fresh catalysts for stock bulls to push the S&P 500 index up through a critical level of 1,200, extending the benchmark index's gain since the March 2009 bottom to 77 percent.
Consumer discretionary stocks, which include retailers and other consumer-oriented companies, were among the top gainers.
