By Timothy R. Homan May 14 (Bloomberg) -- Sales at U.S. retailers climbed in April for a seventh straight month, signaling consumers are helping to broaden the economic recovery. Purchases increased 0.4 percent last month, exceeding the median estimate of economists surveyed by Bloomberg News, after a 2.1 percent gain in March that was larger than previously estimated, Commerce Department figures showed today in Washington. The advance was led by automobile dealers and building-material stores. Further gains in consumer spending may give companies the confidence to keep hiring after payrolls climbed in April by the most in four years, helping households to continue shopping. More employment would ensure the recovery from the worst recession since the 1930s is sustained. “The consumer remains resilient,” said Tom Simon, an economist at Jefferies & Co. in New York, who accurately forecast the sales increase. “If employment continues to grow on the path that it has, it will certainly support sales.” Industrial production rose in April by the most in three months, figures from the Federal Reserve showed today. Output at factories, mines and utilities increased 0.8 percent last month after a 0.2 percent gain. Production at manufacturers rose 1 percent for a second month. Stocks declined on concern that Europe’s debt crisis will curb economic growth. The Standard & Poor’s 500 Index fell 1.5 percent to 1,140.51 at 9:54 a.m. in New York. Treasury securities rose. Retail sales were projected to increase 0.2 percent, according to the median estimate of 83 economists in a Bloomberg survey. Forecasts ranged from a decline of 0.8 percent to a gain of 0.7 percent. Excluding Autos Purchases excluding autos were projected to increase 0.4 percent, according to the survey median. The gain in sales wasn’t as broad-based as in prior months, which may reflect the influence of an early Easter. More holiday-related shopping probably took place in March at the expense of April. After revisions, the March increase in purchases matched the increase last August as the biggest since January 2006. Six of 13 major categories showed increases in sales last month, led by a 6.9 percent advance at building-material stores such Home Depot Inc. Purchases of automobiles rose 0.5 percent, counter to industry figures which showed a drop. Spending at service stations, health care stores and restaurants also climbed. Excluding autos, gasoline and building materials, which are the figures used to calculate gross domestic product, sales decreased 0.2 percent, the first drop since July. Early Easter Chain stores reported the smallest increase in monthly sales since November, industry figures showed last week. Demand was dragged down by teen-clothing retailers Abercrombie & Fitch Co. and Aeropostale Inc., and the early Easter. Sales at electronics and appliance stores dropped even as Americans snapped up Apple Inc.’s iPad. Chief Executive Officer Steve Jobs of Cupertino, California-based Apple said last week the company sold its millionth iPad, a tablet computer, on April 30. Apple sold out of all three versions of the iPad 3g, which went on sale two weeks ago, at its stores in 13 U.S. cities. “Demand continues to exceed supply,” Natalie Kerris, a spokeswoman for Apple, said May 6. “We’re working hard” to provide iPads to additional customers, she said. Job Gains One reason Americans are spending may be that the labor- market recovery is accelerating. Payrolls increased by 290,000 in April, the most in four years, according to figures from the Labor Department last week. Unemployment climbed to 9.9 percent from 9.7 percent as thousands of jobseekers entered the workforce. Consumer spending has increased for six months through March, the government reported on May 3. Economists surveyed by Bloomberg this month forecast purchases to increase 2.6 percent in 2010. Purchases declined in 2009 and 2008, the first back- to-back decrease since the 1930s. Gross domestic product grew at a 3.2 percent annual rate in the first quarter after expanding at a 5.6 percent pace in the last three months of 2009, figures from the Commerce Department showed last month. Household spending last quarter climbed at the fastest pace in three years. To contact the reporter on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net

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