U.S. retail sales rose unexpectedly in April as households purchased automobiles, building materials, and a range of other goods, indicating underlying strength in the economy. The Commerce Department reported Monday that retail sales rose 0.1 percent last month following a 0.5 percent drop in March. Economists had expected retail sales, which account for about 30 percent of consumer spending, to decline last month. Core retail sales, which exclude automobiles, gasoline, and building materials and correspond most closely with the consumer-spending component of gross domestic product, increased 0.5 percent in April after rising 0.1 percent the previous month. The increase in core sales, following relatively strong job growth over the last three months, should help to calm concerns of a sharp slowdown in the economy early in the second quarter even as government austerity is starting to hurt manufacturing.
