Shoppers are spending more

According to official figures, total retail sales went up by 1.4%, boosted by strong car sales.

The dollar strengthened on the data.

Weekly consumer spending figures released on Tuesday also painted a picture of an economy on the upturn.

Wal-Mart figures

The figures come as the world's biggest company by revenue, Wal-Mart, reported a 21% rise in quarterly profits.

The company said sales at its foreign stores, which includes the UK's Asda, and its Sam's Club discount warehouse business offset sluggish growth at its US stores.

It said US store sales gained momentum toward the end of the three month period and it was hopeful recent income tax rebates would help sustain the rebound.

But it forecast earnings for the rest of the year that were slightly below Wall Street expectations.

Wal-Mart shares, which hit a near-14-month high at $58.80 on Tuesday, closed down 73 cents, or 1.24%, at $58.07 on the New York Stock Exchange.