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Friday, March 12, 2004

February retail sales up by 0.6%


Jobless claims fall to 6-week low

The Associated Press

WASHINGTON - America's shoppers showed more energy in February and boosted sales at the nation's retailers by 0.6 percent, a hopeful sign for healthy economic growth in the current quarter.

The increase reported Thursday by the Commerce Department came after sales rose by a revised 0.2 percent in January, typically a slow month for retailers. January's modest increase turned out to be a much better showing than the 0.3 percent decline reported a month ago.

The 0.6 percent advance in sales for February, which matched economists' expectations, was the largest increase since November. February's gain was led by a 2.7 percent jump in automobile sales, the biggest increase in nearly a year.

Separately, new claims for unemployment benefits dropped last week by a seasonally adjusted 6,000 to 341,000, a six-week low, the Labor Department said. Although companies are slowing the pace at which they are laying off workers, they haven't been in a rush to hire them back.

On Wall Street, though, edgy investors sent stocks skidding as a terrorist attack in Madrid overshadowed mostly good economic news and bullish forecasts from several companies. The Dow Jones industrials lost 168.51 points to close at 10,128.38.

Excluding sales at automobile dealerships, sales at all other retailers held steady in February, following a 1.2 percent rise in January.

Consumer spending accounts for roughly two-thirds of all economic activity in the United States.




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