US retail sales fell a smaller-than-expected 0.1 per cent in October on a dip in car purchases, but sales grew robustly outside the motor business, government data showed today.
Wall Street analysts had forecast retail sales to fall 0.7 per cent in the month on weak motor vehicle and parts sales. September's gain was revised to 0.3 per cent from a rise of 0.2 per cent.
Car sales were the weak point of the month, falling 3.6 per cent in October. Excluding autos, retail sales rose 0.9 per cent, compared with expectations for a 0.2 per cent advance and following a revised 1.4 per cent increase in September.
Part of the overall weakness was due to a price effect after gasoline fell sharply from a peak hit after hurricanes Katrina and Rita drove prices above $3 a gallon.
Commerce Department officials said they were not able to estimate how much Hurricane Katrina affected retail sales data but noted the regions hit by the Gulf Coast storms account for a minimal portion of national retail business.
The Commerce Department said October gas station sales were down 0.8 per cent, the largest drop since December 2004. Retail sales excluding motor vehicles and gasoline advanced 1.1 per cent after growing by 0.8 per cent the previous month.
In other evidence of solid underlying retail demand, clothing and clothing accessories store sales jumped 3.1 per cent, the largest increase since October 2002 when sales surged 5.2 per cent.
Analysts had expected lower energy prices to bolster overall retail sales, although they warned consumer spending remains vulnerable to a renewed surge in the cost of fuel if the US winter proves unusually cold.