US retail sales rise more than forecast in April, data reveals

US retail sales rose more than expected in April, driven by purchases of automobiles, the Commerce Department said on Friday.

Sales jumped 1.3% last month, the largest gain since March 2015, compared to a 0.3% decline in March. Analysts had pencilled in a 0.8% increase for April.

The March figure was revised from an earlier estimate for a 0.4% drop.

Excluding automobiles, gasoline, building materials and food services, retail sales increased 0.9% in April, beating forecasts for 0.3% growth and following an upwardly revised 0.2% rise in March.

“Fed Chair Janet Yellen will be well aware that the US consumer is the engine room of the world’s largest economy, and downbeat comments from a number of large department stores in recent days could signal tough times ahead for the off-line retail sector," said Dennis de Jong, managing director at UFX.com

“However, today’s encouraging numbers mean that many are expecting consumer confidence to remain strong, and there are signs that the Fed is looking closely at raising borrowing rates again. Global uncertainty continues, but the US economy is actually in pretty good shape.”