Retails sales up 1 percent in February

WASHINGTON (AP) — Shoppers snapped up new cars, clothing and electronics in February, pushing retail sales up for the eighth straight month.

Retail sales rose 1 percent last month, the Commerce Department reported today. Part of the gain reflected higher prices for gasoline. Still, excluding sales at gas stations, retail sales rose a solid 0.9 percent.

February's jump in sales followed a strong upward revision that showed a 0.7 percent increase in January. That was more than double the original estimate.

Sales totaled $387.1 billion, up 15.3 percent from the recession low reached in December 2008. A Social Security tax cut and rising employment will likely encourage consumers to spend more this year, although higher gas prices will cut into their disposable income.

"This is a very encouraging report," said Paul Ashworth, chief U.S. economist at Capital Economics. He said spending should be a strong 3 percent or more in the first three months of this year. This category is closely watched because it accounts for 7