U.S. vehicle sales declined a mild 1 percent last month compared with March 2001, offering encouragement to analysts and automakers that

demand will strengthen and the economy will continue to improve, according to the Associated Press.

Sales of passenger cars fell 2 percent compared with the same month a year ago, while light truck sales slipped 1 percent, the industry reported April 2. Several automakers say strength in sales to retail customers

helped their results.

The Big Three's overall sales dropped 6 percent

compared with March 2001. Much of that decline was blamed on lower fleet sales to rental car companies and others in the wake of the Sept. 11

terrorist attacks. But even that effect is starting to fade, according to the manufacturers.

All the Detroit automakers saw March U.S. vehicle sales fall from last year's boom-time levels, but General Motors Corp. continued to outdo its crosstown rivals, according to a Detroit Free Press report by Lawrence Ulrich.

Ford Motor Co. got hit with a 12.7-percent sales decline in March, its third straight month of double-digit drops. Chrysler Group sales fell 4 percent compared with March 2001. But General Motors Corp. continued to hold onto its recent market share gains. GM's sales fell just 1.8 percent, in line with an overall industry drop of 1.5 percent.

Sales declines at domestic automakers were once again offset by gains for many imports. Toyota

reported its best-ever March, with sales up 4.1 percent. South Korea's Hyundai Motor Co. announced March sales up 19 percent, for its 14th consecutive record sales month. Nissan Motor Co. tallied a 15-percent gain compared with the previous March. Honda Motor Co.'s March U.S. sales rose 2.1 percent.

Meanwhile, among the German carmakers, Volkswagen AG boosted its March sales 3 percent and BMW AG's U.S. sales rose 14 percent.