April 29 (Reuters) - Global paint supplier PPG Industries PPG.N beat Wall Street's first-quarter profit expectations on Thursday, driven by higher sales and strong performance in its performance coatings segment, sending its shares up 3.1% in extended trading.

In March, U.S. retail sales saw their largest increase in over two years as consumers bought more motor vehicles and a range of other goods to avoid higher prices from tariffs, helping to stabilize the economy in the first-quarter.

Separately, the U.S. housing market also experienced a rise in new single-family home sales in February and March, as buyers responded to lower mortgage rates and warmer weather.

The combination of robust auto sales and a recovering housing market has helped companies like PPG in the quarter.

"As we look ahead with this economic backdrop, we are executing our self-help cost actions, working with our suppliers and customers to adjust to global product flows and mitigate cost impacts, and we are further strengthening our structural organic growth capabilities," said CEO Tim Knavish.

Net sales in its performance coatings segment, which includes aerospace coatings, automotive refinish coatings, protective and marine coatings, rose to $1.27 billion during the January-March quarter, compared with $1.18 billion a year earlier.

The company said that it expects to deliver $75 million in annual savings this year, along with additional cost management actions.

Peer Sherwin-Williams SHW.N also beat Wall Street estimates on Tuesday for first-quarter profit, helped by higher prices for its industrial paints.

The Pittsburgh, Pennsylvania-based company posted an adjusted profit of $1.72 per share for the quarter ended March 31, compared with analysts' estimates of $1.62 per share, according to data compiled by LSEG.

(Reporting by Pooja Menon in Bengaluru; Editing by Tasim Zahid)

((Pooja.Menon@thomsonreuters.com;))