Retail sales rose in March at the fastest clip in three months as warmer weather and an early Easter put consumers in a buying mood.

Retail sales increased 0.7 percent in March, up from a 0.5 percent gain in February. It was the best showing since a 1.1 percent rise in December, the Commerce Department reported Monday.

The increase was just slightly below the 0.8 percent that had been forecast. Easter came eight days earlier than last year, and the weather in March was an improvement from February, which had been colder than usual.

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The strength in retail sales should relieve worries that slumping home prices and rising energy costs could cause a serious cutback in consumer spending.

Consumers, who account for two-thirds of total economic activity, are currently keeping the economic expansion afloat even though activity has slowed considerably over the past year.

The overall increase in sales last month reflected in part a big jump in gasoline prices. Sales at gasoline stations surged by 3.1 percent in March. Excluding gasoline sales, retail spending would have risen a more moderate 0.4 percent in March. The changes in retail sales are not adjusted for inflation.

Sales at general merchandise stores, a category which includes department stores, rose by 1.1 percent last month, rebounding from a 0.5 percent decline in February.

Sales at specialty clothing stores posted a strong 2.4 percent increase following a 1.9 percent drop in February.

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