By Vera von Lieres

Johannesburg - Seasonally adjusted retail sales rose by 1.7 percent in the first quarter compared with the fourth quarter of last year, according to the latest figures by Statistics SA. Sales were 3.1 percent higher in the first quarter compared with the same period last year.

After a strong showing in February, sales of durable goods (furniture and domestic appliances) continued to perform well in March, while demand for semidurable goods (clothing and footwear) was also healthy 
. JP Morgan economist Marisa Fassler said it was very encouraging that expenditure on durable goods seemed to have recovered from last year's lows.

The numbers were not surprising, given the latest figures on private sector demand for credit, which suggested that household consumption remained firm.

Consumer sentiment should receive a further boost in the months ahead, provided the Reserve Bank delivered successive interest rate cuts in June, September and November.