U.S. February retail sales up 0.6% as gas prices climb

April 1 (UTC+8) — U.S. retail sales rose more than expected in February, supported by broad-based gains and a rebound in auto purchases, according to data released Wednesday by the U.S. Department of Commerce. Retail sales, unadjusted for inflation, increased 0.6% in February after a slight dip in January. Rising gasoline prices could weigh on consumer demand in coming months. The conflict involving the U.S. and Israel against Iran has lifted global oil prices by more than 50%, pushing the national average gasoline price above $4 per gallon for the first time in more than three years. Some market participants worry that further increases at the pump could offset part of the boost from tax cuts to household spending and the broader economy. Core retail sales — excluding automobiles, gasoline, building materials and dining services — rose 0.5% in February, following a 0.2% gain in January. This measure is viewed as the closest match to the consumer spending component of GDP. Consumer spending cooled in the fourth quarter of last year, pulling annualized GDP growth down to 0.7%.