By CountingPips.com
U.S. Retail Sales rose more than expected in the month of March as consumer spending on retail goods rose for a third straight month. Advance estimates of retail sales showed that sales grew by 1.6 percent to a total of $363.2 billion in March, according to the report by the U.S. Commerce Department released today. February’s retail sales data was 
revised higher to show an increase of 0.5 percent after the original report registered a 0.3 percent increase.
On an annual basis, March’s retail sales level was 7.6 percent higher than the March 2009 sales while data for the first quarter of 2010 showed that sales increased by 5.5 percent over the first quarter of 2009 level.
The monthly sales were better than expected as the market forecasts were looking for retail sales to rise by approximately 1.2 percent.
Core retail sales, excluding automobile sales and parts, advanced by 0.6 percent in March after the revised data showed that core sales rose by 1.0 percent in February. The core sales data also surpassed market forecasts which were expecting a rise of 0.5 percent. On an annual basis, core sales rose by 6.4 percent in March following an annual gain of 4.5 percent in February.
Contributing to the advancement in retail sales numbers for March was a 6.7 percent jump in motor vehicle & parts dealers while building material & garden eq. & supplies dealers saw a sales gain by 3.1 percent. Also contributing positively to the data were gains in clothing & clothing accessories stores by 2.3 percent, furniture & home furnishings stores by 1.5 percent and sporting goods, hobby, book & music stores by 1.0 percent.
Contributing negatively to the retail data was a decrease in electronics & appliance stores sales by 1.3 percent while gasoline stations sales declined by 0.4 percent for the month. Despite the monthly decline, gasoline station sales are 26.4 percent higher than they were a year ago.
US Consumer Prices edge higher
U.S. consumer prices edged higher in March and were in line with market expectations, according to a report released today by the U.S. Department of Labor. The Consumer Price Index, a key measurement of inflation, increased by 0.1 percent in March following no change in February and five straight months of 0.2 percent increases since September 2009. Today’s data matched forecasts expecting a 0.1 percent monthly rise.
The annual rate of consumer prices rose by 2.3 percent when compared to March 2009 following February’s 2.1 percent annual increase.
The core inflation reading, excluding food and energy prices, showed a flat reading or no change for the month. The annual rate of core inflation increased by 1.1 percent for March following up an increase of 1.3 percent in February.
Forex: US Dollar mostly lower in trading today. Stocks on the rise
The U.S. dollar has been lower in the forex markets while the American stock markets have traded higher today. The dollar has advanced today versus the Japanese yen while falling against the British pound, Canadian dollar, New Zealand dollar and Australian dollar. The euro and Swiss franc are currently trading virtually unchanged against the dollar in forex trading before noon in the US trading session.
The U.S. stock markets, meanwhile, are having a positive session so far today with the Dow gaining around 50 points, the Nasdaq increasing by over 15 points while the S&P 500 is up by over 4 points at time of writing. Oil has traded higher by $1.07 to the $82.80 per barrel level while gold is almost unchanged at the $1,153.20 per ounce level.
