U.S. RECORD SALES BOOGIE TO 12% RISE.

Byline: Dave McNary Daily News Staff Writer

Domestic record sales jumped 12 percent last year to hit $13.7 billion as shipments rose 5.7 percent to 1.12 billion units, a trade group reported Thursday.

The results represented the strongest growth in four years and were fueled by the popularity of rap, hip-hop, soundtracks, box sets and products aimed at women and teens, according to the Recording Industry Association of America. Domestic consumers are responsible for about one-third of the world's music market.

RIAA president Hilary Rosen cited diversity of recordings, hits being spread through the year, strong fourth-quarter performance and increased demand for full-length CDs and music videos. ``These factors, combined with retailers who are purchasing efficiently, managing inventories effectively and selling consistently throughout the year translates into Americans purchasing music at a remarkable rate,'' she added.

Retailers currently stock significantly lower levels of inventory then they did a few years ago, when the music business flattened out, and that practice has lowered return rates to manufacturers.

The industry's flagship format, compact discs, saw unit shipments rise 12.5 percent to 847 million, rebounding from 1997's 3.3 percent decline. Compact disc sales grew 15.1 percent to $11.42 billion. Cassette shipments fell 8.2 percent to 158.5 million and sales dropped 6.8 percent to $1.42 billion.

Artists posting strong performances last year included the Backstreet Boys, the Beastie Boys, Brandy, Garth Brooks, Mariah Carey, Sheryl Crow, Celine Dion, DMX, Hanson, Jewel, Sarah McLachlan, Monica, 'N Sync, the Spice Girls, Bruce Springsteen and Shania Twain. Top soundtracks included ``Armageddon,'' ``City of Angels,'' ``Hope Floats,'' ``Titanic'' and ``The Wedding Singer.''