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March US Retail Sales Rise More Than Expected, Ex-Auto Sales Up

-- US retail sales rose by 1.7% in March, above the 1.4% increase expected in a survey compiled by Bloomberg as of 7:35 am ET and following the previous month's revised 0.7% gain.

Excluding a 0.5% increase in motor vehicle sales, retail sales were up 1.9% compared with an expected 1.4% gain. That followed a 0.7% gain in February.

Removing both motor vehicles and a 15.5% surge in gasoline station sales, retail sales were up 0.6% in March, the same as in February, due to widespread gains.

Sales at food services and drinking places increased by 0.1% after a 0.5% gain in the previous month.

There were also notable gains in sales of furniture, electronics, building materials, health care, department stores and nonstore retailers.

Control group sales, which exclude autos, building materials, gasoline stations and food services, rose by 0.8% after a 0.6% gain in the previous month.

The monthly retail sales report from the US Commerce Department measures spending on retail products and food, the largest portion of economic growth. The report covers spending on goods with a services report released later each month.

Investors watch the control group that excludes food services, autos, gasoline and building materials because it feeds directly into the GDP report measuring economic growth.

If the data shows a strong US economy, that's generally bullish for stocks and bearish for bonds.

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