U.S. retail sales rose solidly in March, as an improved job market allowed consumers to ignore high gasoline prices and shop, the government reported Monday, implying that economic growth in the first quarter likely was not as weak as some had feared. The Commerce Department said retail sales rose 0.8 percent last month to a record high of $411.1 billion, or 24 percent higher than the recession low seen in March 2009. Sales rose 1.0 percent in February. The gain in March, which surpassed economist expectations for a 0.3 percent increase, could prompt analysts to raise their first-quarter growth forecasts from an annual pace of about 2.5 percent. The U.S. economy grew at a 3.0 percent annual rate in the fourth quarter of 2011. In March, consumers spent more despite higher gasoline prices, which averaged 27 cents per gallon (3.8 liters) higher than in February. Gasoline sales rose 1.1 percent after rising 3.6 percent the previous month. Motor-vehicle sales rose 0.9 percent after increasing 1.3 percent in February. Excluding car and fuel sales, retail sales increased 0.7 percent, better than the previous month's gain in the category. Sales at electronics stores rose 1 percent, the most in five months. Gasoline prices rose more slowly in March, according to a separate report released last week, and in the last two weeks they are showing signs of leveling, which may be giving consumers more incentive to spend. In general, consumers are more confident in the economy after seeing hiring strengthen over the winter. Job gains averaged 246,000 per month from December through February. More hiring has helped reduce the unemployment rate from 9.1 percent in August to 8.2 percent in March.
