http://www.bloomberg.com/apps/news?pid=20601087&sid=agkv0bs628jw&refer=home
May 13 (Bloomberg) -- Retail sales in the U.S. fell in April, led by a slump in auto purchases that masked stronger-than- forecast gains elsewhere, indicating rising energy bills and a faltering labor market haven't stopped Americans from shopping. Purchases dropped 0.2 percent last month after a 0.2 percent increase in March, the Commerce Department said. Purchases excluding automobiles increased 0.5 percent, more than twice as much as anticipated. The gains may raise expectations that consumers will spend their tax rebate checks at malls and restaurants in coming months, cushioning the economic slowdown. Still, tougher lending rules and declines in payrolls and property values indicate any rebound may be short-lived. ``Don't count the consumer out yet,'' Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York, said before the report. ``Jobs are harder to get, gasoline prices set new records almost daily, and yet the consumer continues to spend on life's necessities.'' The median forecast of 76 economists surveyed by Bloomberg News projected a 0.2 percent decline. Estimates ranged from a drop of 0.9 percent to a 0.6 percent increase. Excluding automobiles, sales were projected to increase 0.2 percent. Today's report showed purchases at automobile dealerships and parts stores dropped 2.8 percent, the most since June, after a 0.5 percent decrease in March. Car Sales Industry figures last week showed cars and light trucks sold at an annual pace of 14.4 million in April, the fewest in almost a decade. Filling station sales also dropped, even as gasoline prices surged. The 0.4 percent decrease last month followed a 1.6 percent gain in March. The report showed strength in housing-related areas, such as building materials, furniture and appliances. The 1.9 percent jump in demand at suppliers of building materials was the biggest since May 2007. Restaurant sales also improved by 0.9 percent, the most this year. Excluding autos, gasoline and building materials, the retail group the government uses to calculate gross domestic product, sales climbed 0.4 percent, matching the previous month's gain that was larger than estimated last month. The government uses data from other sources to calculate the contribution from the three categories excluded. --------------------------------- Be a better friend, newshound, and know-it-all with Yahoo! Mobile. Try it now.