Strong retail sales calm soft-spot fears By Alister Bull WASHINGTON (Reuters) - U.S. retail sales surged to the strongest showing in seven months in April, government data showed on Thursday, as broad-based spending eased worries about a slowing U.S. economy and lifted forecasts for future growth. A larger-than-expected rise in jobless claims put a slight cloud on the horizon. But markets focused on heavy spending by consumers as the second quarter began and drove the dollar to its highest level this year against major currencies. The Commerce Department said retail sales jumped 1.4 percent, double Wall Street's forecasts, on broad-based gains after March's increase was revised up slightly to 0.4 percent. A Labor Department report showed first-time claims for jobless insurance rose to 340,000 in the week ending May 7, versus forecasts of 325,000. The April sales number should add weight to contentions by Federal Reserve officials that a recent oil-induced slowdown in economic growth is likely to prove temporary. Economists cautioned the early Easter break might be responsible for seasonal distortions that made April stronger and March weaker than expected. EASTER IMPACT But averaging the two months together still produced a solid 0.9 percent increase, which will encourage the U.S. central bank to keep raising interest rates at a measured pace. "Bottom line: The economy is fine, and the Fed will continue to take the funds rate toward neutrality," said RBS Greenwich Capital chief economist Stephen Stanley. U.S. government bond prices initially dipped on the retail sales report but rebounded in afternoon New York trade with the 10-year benchmark ending 9/32 higher on a yield of 4.17 percent. U.S. economic growth slowed to an annual 3.1 percent pace in the first quarter amid soaring energy costs. But economists now think that number may be revised up after stronger than expected trade numbers in March.     Continued ... Quelle "Strong retail sales calm soft-spot fears" : reuters.com Main page for "Strong retail sales calm soft-spot fears"