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Tuesday, 14 May, 2002, 21:09 GMT 22:09 UK
Gardeners nurture US sales boom
Watering can
Garden supplies and building material stores saw sales rise by 2.7%
The US shopping spree resumed last month, as motorists and green-fingered shoppers splashed out.

Retail sales rose 1.2% in April, the Commerce Department said.

The rise, the biggest gain since October, was double the increase that Wall Street had expected.

The data boosted share markets on Wall Street and Europe, as hopes revived that consumers would help power the US economy, the world's biggest, out of its slowdown.

"It's a good number," said Larry Rhame, US economist with Brown Brothers Harriman in New York

"The US consumer continually surprises to the upside and this is yet another surprise."

Richard Yamarone, of Argus Research, said: "Consumer will once again play Atlas and support the economic recovery."

Best performers

Auto dealers were among the main beneficiaries of consumer largesse, with sales rising 1.9%.

Sales at building materials and garden supplies dealers surged 2.7%.

And health and beauty stores saw sales rise by 1.9%, after a 0.5% slide in takings in March.

On Wall Street, the benchmark Dow Jones Industrial Average share index closed up 189.24 points, or 1.9%, at 10,298.90.

The tech-heavy Nasdaq index ended up 66.52 points, or 4.0%, to 1,719.06.

Stock markets in London, Paris and Frankfurt also closed higher.

See also:

25 Sep 01 | Business
Why consumer confidence matters
01 Feb 02 | Business
US recession fears ease
26 Feb 02 | Business
US consumer confidence slips
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