US retail sales rose unexpectedly by 0.2 per cent last month as a decline in clothing and general merchandise was outweighed by a 1.1 per cent jump in petrol sales.

However, while the spending figure in March was higher than the zero growth forecast and the 0.4 per cent decline recorded in February, analysts said that the rise was entirely down to the increased cost of petrol on the back of high oil prices.

Excluding petrol, March sales were flat providing further evidence that consumers remain wary of spending too much in an economy that appears to be in decline.

Jonathan Basile, an economist at Credit Suisse, said: "Gas essentially accounted for the whole increase. Consumers haven’t been this cautious in a very long time and that is likely to translate into a soft profile for consumer spending."

Excluding cars, retail sales rose by 0.1 per cent in March, according to new figures from the Commerce Department today.

Sales of building materials and supplies fell by 1.6 per cent last month, the Commerce Department figures show. Food and beverage store sales rose by 0.4 per cent in the period.

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