US consumers shrugged off higher taxes to boost
retail spending by 1.1% in February from the month before.
It was the biggest rise in five months.
About half the increase was due to higher petrol
prices, but consumers also increased spending on a range of other goods, from
cars to clothing to home ware and furniture.
The government figures surprised economists, who
thought payroll tax increases - which went into effect in January - would hurt
spending.
A separate government release showed that businesses
are also optimistic, with inventories increasing by 1% in January.
Growing inventories indicate that businesses expect
demand to pick up in the future, and sluggish inventory growth was one of the
contributors to tepid economic growth in the last quarter.
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