Sales at U.S. retailers unexpectedly fell in March after two months of increases, a government report showed on Tuesday, dimming hopes the recession was close to hitting bottom.

However, Federal Reserve Chairman Ben Bernanke stayed upbeat and referenced the hopeful economic signs despite the 16-month long recession.

The Commerce Department said total retail sales dropped 1.1 percent after rising 0.3 percent in February. March sales were weighed down by declining purchases for big-ticket items like motor vehicles and electronic goods.

“This throws some cold water on the idea that we’re carving out a bottom. As long as you have initial jobless claims running around 650,000 and getting revised higher week after week, I don’t see a recovery,” Jacob Oubina a currency strategist at Forex.com, Bedminster, New Jersey.

…

“This serves as a reminder that the recession is still here and that rising unemployment, declining income as well as a deep plunge by household net worth will adversely affect retail sales indefinitely,” said John Lonski, chief economist at Moody’s Investors Service.

Excluding motor vehicles and parts, sales fell 0.9 percent in March, compared to a 1 percent gain the prior month. The data highlighted the continuing problems in the U.S. auto industry, with vehicle and parts sales dropping 2.3 percent after a 3 percent decline in February.

Gasoline sales fell 1.6 percent in March after increasing by 3.1 percent the previous month.

Sales of electronic goods tumbled 5.9 percent, versus a 0.7 percent gain in February, while building materials eased 0.6 percent after slipping 0.5 percent.

Source: Reuters

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