Car sales drive best retail growth in five months

US retail sales in February rose by possibly the most in five months, spurred by the strongest demand for automobiles since 2008…

US retail sales in February rose by possibly the most in five months, spurred by the strongest demand for automobiles since 2008, economists said this week.

The 1.1 per cent rise would follow a 0.4 per cent gain in January, according to the median forecast of 67 economists ahead of Commerce Department figures due on March 13th.

Industrial production picked up in February, while inflation, excluding food and energy, remained in check. Sales at retailers like Gap and Target beat analysts’ estimates, a sign an improving job market is helping bolster consumer spending. This may not be enough to satisfy Federal Reserve officials, who this week will probably reaffirm their plan to keep interest rates low through 2014.