Retail sales post modest gain in March

Consumers, beset by a credit crunch, rising energy and food costs and a prolonged housing slump, boosted spending only slightly in March.

The gain reflected soaring gasoline costs rather than any real strength in demand, however.

The Commerce Department reported Monday that retail sales edged up 0.2 percent in March after a 0.4 percent decline in February. However, without a 1.1 percent jump in sales at gasoline service stations, retail sales would have been flat last month.

Economists said the March report did nothing to dispel their worries that the country has either toppled into a recession or is close to a downturn as households have been battered by a series of blows and now are facing rising layoffs.