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Retail sales increase for ninth consecutive month

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Sales at U.S. retailers rose in March for a ninth consecutive month, showing that the improving job market is helping Americans cope with higher costs for fuel and food, Bloomberg reported.
 
Purchases increased 0.4 percent, following a 1.1 percent February gain that was larger than previously estimated, according to U.S. Commerce Department figures released Wednesday. The median forecast of 82 economists surveyed by Bloomberg News was a 0.5 percent increase. Sales excluding automobiles and gasoline advanced more than projected.

Declining unemployment and a cut in payroll taxes for 2011 are helping sustain sales at department store chains like Macy’s Inc. and Saks Inc. At the same time, mounting gasoline and grocery bills are eroding confidence and pinching wallets, making it likely consumer spending, the biggest part of the economy, cooled in the first quarter from the final three months of 2010.

“The consumer was more resilient in March than some of our concerns,” said John Herrmann, , a senior fixed-income strategist at State Street Global Markets LLC in Boston. “Improving labor market conditions are helping support consumption. This is a very impressive pace of spending, with gains across a diverse range of products.”