U.S. retail sales fell slightly in February but performed much better than expected, with increases in an array of businesses from furniture to clothing and electronics.

Retail sales fell by 0.1% last month, the Commerce Department said Thursday. Economists expected a bigger drop of 0.4%.

And sales in January were revised up sharply, surging 1.8% instead of rising by 1.0% as originally reported.

Automobile and parts sales proved grim again, plunging 4.3% in February. Excluding autos, all other sales climbed 0.7% - much better than the 0.1% gain expected by economists. Sales without autos and parts in January had gone up an upwardly revised 1.6% - following five straight, large drops.

Gasoline station sales gave a lift to the overall retail number. Last month, gasoline station sales climbed 3.4%. Gasoline sales rose 2.8% in January. Stripping away sales at gas stations, demand at all other retailers decreased 0.4% in February.

The retail sales report details how people spend their money. Consumer spending is a vital part of the economy, making up about 70% of gross domestic product, which is the broad measure of economic activity.

Excluding auto sales and gas station sales, all other retailers saw sales rise 0.5% in February.

Sales last month climbed 2.8% at clothing stores; 1.2% at electronic stores; 1.3% at general merchandise stores; 0.3% at mail order and Internet retailers; 0.6% at health and personal care stores; 0.7% at furniture retailers; and 0.2% at sporting goods, hobby, book and music stores.

Sales fell 0.2% at eating and drinking places; 0.7% at food and beverage stores; and 0.2% at building material and garden supplies dealers.

Weakness in spending in recent months is both a cause and symptom of the recession. People didn't open their wallets because the stock market collapsed, home prices crashed, heavy household debt, and fears of layoffs.

Data last week showed the savings rate in January reached a nearly 14-year high. The Commerce Department reported personal savings as a percentage of disposable personal income was 5.0%, the highest since 5.5% in March 1995 and up from 3.9% during December 2008.

The economy fell 6.2% at the end of 2008, the worst showing in almost 27 years. Companies losing revenues to the slump are cutting costs by firing people. The economy in February shed 651,000 jobs, raising total job losses since the recession began in December 2007 to 4.4 million. National Semiconductor Corp. (NSM), with net income down 71% in the quarter ended March 1, announced Wednesday plans to eliminate 1,725 jobs, or 26% of the Santa Clara, Calif., technology company's workforce.

The rising unemployment rate is pushing up credit card charge-offs; those reached a new high of 7.74% in January. Uncollectible debt could lead banks to reduce credit lines to customers, which would chill spending and hurt the economy further.

Year-over-year, car and parts sales were 23.5% lower from February 2008.

-By Jeff Bater, Dow Jones Newswires; 202-862-9249; jeff.bater@dowjones.com