The Commerce Department reported that U.S. retail sales rose 1.6 percent in March, the biggest advance in four months, and data for prior months was revised sharply higher.

The March gain exceeded consensus estimates for a 1.2 percent increase and this follows upwardly revised gains of 0.5 percent in both January and February. On a year-over-year basis, retail sales were up 7.6 percent, the biggest annual increase since early-2006, however, the sales volume from 12 months ago makes for an easy comparison as  March 2009 marked the low point for the recession.

Motor vehicle sales were, by far, the largest contribution to the overall gain, up 6.7 percent in March after falling 1.9 percent in February, but gains were broad-based with 11 of the 13 categories advancing. Following an increase of 1.0 percent the month before, sales excluding autos  rose 0.6 percent last month.

There were notable improvements in housing-related categories including a 3.1 percent sales increase at building material and garden supply stores along with a 1.5 percent gain at furniture and home furnishings stores, the former posting its first year-over-year increase since November 2007, just before the start of the recession.

Sharply higher tax refunds – some $350 billion according to recent reports – have no doubt boosted sales and, while consumer confidence indexes still show Americans are cautious, what they say and what they do are often times two very different things.