US retail sales fell in March, dashing recent hopes that consumer spending might finally be stabilising in the US as a savaged labour force continues to curb its spending.

Sales declined by 1.1 per cent in March against the previous month and were off by 9.4 per cent from a year ago, commerce department figures showed on Tuesday. The results disappointed analysts who expected a small increase and were due to slowing sales of cars, car parts, electronics and appliances.