US retail sales edged upwards in March, beating analysts' expectations, according to the Commerce Department.

Retail sales climbed 0.2% in the month, after a 0.4% fall in February, which was revised upwards from a 0.6% fall.

Consumer spending is closely watched in the US because it accounts for about two-thirds of total economic activity.

However, analysts remained cautious after a consumer survey late last week showed shopper sentiment had fallen to its lowest level in 26 years.

The main driver of sales was stronger demand at petrol Iceland's economy 'under attack' ...
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However, analysts warned that the retail sales figures were weak when petrol sales were not taken into account.

"If we go back to Friday's weak consumer numbers, it bodes ill for retail sales going forward," said Matthew Strauss of RBC Capital Markets.

Christopher Low of FTN Financial pointed out that there was still "weakness in furniture, electronics, building materials and clothing".

(BBC)

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