Awwal 09, 1432 / April 13, 2011, SPA -- Consumers spent more in March on furniture, electronics and at restaurants, but also paid more for gas, the Commerce Department said in a Wednesday report. Retail sales increased 0.4 percent last month-the ninth straight monthly gain, the Commerce Department said. The increase fell to a 0.1 percent when sales at gasoline stations were excluded. Still, the biggest decline in auto sales in more than a year also pulled down overall sales. When taking out sales at gas station and of autos, retail sales rose 0.6 percent. Economists are hoping that a payroll tax cut and brighter outlook for job growth will keep consumers shopping this year. Consumer spending accounts for 70 percent of economic activity. Analysts worry that the recent spike in energy prices will not leave shoppers with much left over to spend on other goods and services. The nationwide average for regular gasoline is now $3.80 a gallon, up from $3.56 a month ago, according to the motor club AAA. For March, sales of autos dropped a sharp 1.7 percent, the biggest decline since February 2010. However, some of the weakness was because General Motors scaled back incentive offers. Economists believe the outlook for auto sales for the rest of this year remains bright, given improving job prospects. Shoppers did spend 3.6 percent more at furniture stores. Sales were also rose at appliance stores and specialty clothing stores. Sales at general merchandise stores, the category that includes big retailers such as Wal-Mart, rose 0.4 percent. However, sales at just department stores such as Macy's saw a 0.2 percent drop in March.
