By Joseph Plocek

WASHINGTON (MNI) - The U.S. February retail sales report was better than expected, although downward revisions to January sales totals poured cold water on the result.

February retail sales printed +0.3% (as opposed to the drop that was expected), and ex-auto sales were an even stronger +0.8%. Sales ex autos and gasoline were +0.9%.

January sales were revised lower to +0.1% overall, so the Q1 gain has been damped. But this is still consistent with recovery; Q1 consumption could be up 2-3% using these numbers.

Sales strength was widespread in February, with the exception of healthcare at -0.7% and autos at -2.0%.

Gains were seen in electronics at +3.7%, food +1.3%, sporting goods +1.2%, furniture +0.7%, and building materials +0.5%. Overall, the January-February data suggest Q1 is growing at a modest pace.

**Market News International Washington Bureau: (202)371-2121**