Retail sales rose for the third straight month in March, as better weather and incentives for automobile purchases encouraged greater spending.

The increase was more than economists had expected. It’s the latest sign that consumer spending is rising fast enough to support a modest economic recovery, Reuters reported. Sales rose 1.6 percent last month, the Commerce Department said this morning, up from February’s revised 0.5 percent gain. Economists surveyed by Thomson Reuters expected a gain of 1.2 percent.

The increases were widespread. Car dealers, home furnishing stores, building supply stores, clothing retailers and general merchandise stores all reported gains. Auto sales rose 6.7 percent, the department said, the most since last October.

In a separate report, the Labor Department said consumer prices edged up just 0.1 percent in March; excluding food and energy, prices were unchanged. Over the past 12 months, these prices have risen at the slowest pace in six years.

Still, household budgets remained under pressure as hourly earnings fell again. In the retail sales report, the Commerce Department said sales rose 0.6 percent, excluding autos. That was also ahead of the 0.5 percent expected by analysts.

Economists have been closely watching retail sales for signs that consumer spending, which powers about 70 percent of the economy, is recovering. Consumers cut back sharply and boosted their savings during the recession. Some now appear to be spending more freely. Still, economists caution that persistent unemployment and stagnant wages could restrain spending in the months ahead.

Last week, chain retailers reported strong sales gains in March. Discounter Target Corp., department store chain Macy’s Inc., clothier Gap Inc. and Victoria’s Secret parent Limited Brands Inc. posted double-digit increases that beat Wall Street analysts’ expectations. Overall, sales in stores open for at least a year rose 9 percent last month, based on an index of 31 retailers compiled by the International Council of Shopping Centers.