WASHINGTON — Consumers, beset by a credit crunch, rising energy and food costs, and a prolonged housing slump, stayed away from the malls in March. Retail sales posted only a small increase after a big drop in February.

The Commerce Department reported today that retail sales edged up 0.2 percent in March after a 0.4 percent decline in February. The March gain primarily reflected higher costs for gasoline, which climbed to record highs. Excluding a big 1.1 percent rise in sales at gasoline service stations, retail sales would have been flat last month.

The new report did nothing to dispel worries that consumers will cut back so sharply on spending that the country will tumble into a recession. Consumer spending accounts for two-thirds of total economic activity.

Consumer confidence plunged to the lowest reading in 26 years in early April, according to the University of Michigan's consumer sentiment index, underscoring the pressures that households are facing and raising the likelihood that retail sales will remain depressed in coming months.

"There's no question the trend in core sales is slowing sharply, led by housing-related sectors," said Ian Shepherdson, chief U.S. economist at High Frequency Economics.

In other economic news, the Commerce Department said inventories held by businesses on shelves and backlots increased by 0.6 percent in February after an even bigger 0.9 percent gain in January.

The increase in inventories, while boosting overall economic output in the first quarter, will likely act as a drag in coming months as businesses cut back on production to reduce stockpiles to more comfortable levels.