March 14, 2007	Wednesday	Safar 24, 1428

WASHINGTON, March 13: US consumers were cautious in February, pushing up retail sales a modest 0.1 per cent, government data showed on Tuesday.

The commerce department's report on retail sales, a key component of economic activity, was weaker than the 0.3 per cent rise expected by the Wall Street analysts.

Excluding the often volatile auto sector, retail sales fell 0.1 per cent for the month.

The report followed January retail sales that were essentially flat, and up a revised 0.2 per cent excluding autos.

Over the past 12 months, overall retail sales are up 3.2 per cent or 3.1 per cent excluding the auto sector.

Economists have been watching to see whether downturns in housing and auto manufacturing will impact consumer spending, which accounts for two-thirds of US economic activity.

The latest figures showed auto sales rose 0.9 per cent last month, helping overall retail figures. But that came after a 0.9 per cent drop in January.

Another factor boosting the headline figure was a 1.2 per cent jump in gasoline sales, the result of higher prices.

Excluding both auto and gasoline, overall sales fell 0.3 per cent, the worst figure since April 2004.

Some analysts said the weak housing market is starting to hurt retail sales, since consumers will not be buying as many furnishings and appliances if they buy fewer homes.—AFP