Tax cuts led people to shop in February

Associated Press

WASHINGTON

Americans are using extra money from their tax cuts to buy new cars, clothing, sporting goods and electronics.

The reduction in Social Security taxes helped lift retail sales for the eighth-straight month in February and by the largest amount since the fall. Still, higher oil prices threaten to chip away at consumers’ disposable income over the next few months.

Retail sales rose 1 percent last month, the Commerce Department said Friday. Shoppers returned to department stores after snowstorms kept many away in January. And they flooded car lots to take advantage of deals.

Consumers also paid more for gasoline. Turmoil in the Middle East has sent oil prices surging this winter. Pump prices jumped 9 percent in February to an average price of $3.38 a gallon, according to AAA’s Daily Fuel Gauge Report. They have gone up even further this month. On Friday, the average price was $3.54 a gallon.