Sales at US retailers rose 1.8 percent in March, the biggest increase in a year, led by purchases of autos, furniture and building materials.

　　Last month's gain, the largest since March 2003, followed a revised 1 percent increase in February, the Commerce Department said in Washington. Excluding autos, sales jumped 1.7 percent, the biggest increase in four years, after a 0.6 percent rise a month earlier. Purchases of building supplies and garden equipment rose the most on record.

　　The biggest jump in payrolls in almost four years last month may be giving consumers the confidence to spend some of their US$11.1 billion more in tax refunds this year than last. Retailers including Wal-Mart Stores Inc and J.C. Penney Co are benefiting. Consumer spending, which includes retail sales and accounts for 70 percent of gross domestic product, is helping the economy to expand this year at the fastest pace in two decades.

　　"The consumer is still not ready to close his checkbook," said Joseph Abate, a senior economist at Lehman Brothers Inc in New York, before the report. Tax refunds have "begun to put a significant amount of cash in consumers' pockets."

　　Economists had estimated retail sales rose 0.7 percent last month to US$327.7 billion following a previously reported 0.7 percent gain in February.

　　Last month's increase excluding autos was the biggest since 1.8 percent in March 2000. Sales at auto dealerships and parts stores climbed 2.1 percent last month after a 2.3 percent gain. Automakers sold 16.7 million cars and light trucks at an annual pace in March, compared with 16.4 million and 16.1 million in the previous two months, according to industry figures.

　　Building materials and garden supply stores sold 10.6 percent more last month following a 0.7 percent increase in February. Purchases of furniture climbed 1.2 percent, after rising 0.5 percent in February. Sales at electronics and appliance stores increased 0.2 percent, the Commerce Department report showed. Buying at sporting goods, hobby, book and music outlets decreased 0.7 percent, and sales at food and beverage stores gained 0.8 percent.

　　Sales at restaurants and drinking places rose 0.6 percent after jumping 1.2 percent a month earlier.

　　Purchases at general merchandise stores rose 0.3 percent last month after increasing 1.5 percent in February. Purchases from clothing and accessory stores jumped 1.9 percent after a 0.3 percent increase.

　　(Bloomberg News)