Sales at US retailers rose more than expected in October as consumers bought more motor vehicles and other goods, but the previous month's figures were revised sharply downward, a government report showed today.
In a report that pointed to gradual improvement in spending, the Commerce Department said total retail sales increased 1.4 per cent last month, the largest advance since August, after dropping by a revised 2.3 per cent in September. Sales in September were previously reported to have declined by 1.5 per cent.
Analysts polled by Reuters had forecast headline retail sales rising 1.0 per cent last month. Sales in October were boosted by a jump in new vehicle and parts sales, which surged 7.4 per cent.
Auto sales had slumped 14.3 per cent the previous month following the expiration of the government's popular "cash-for-clunkers" incentive program in August that had buoyed demand for motor vehicles.
Previously, the government had reported auto sales falling 10.4 per cent in September.
With government stimulus behind the bulk of the economy's 3.5 per cent annualised growth pace in the third quarter, there are fears that rising unemployment will continue to weigh on consumer spending and hold back the recovery.
Excluding motor vehicles and parts, retail sale rose by a smaller-than-expected 0.2 per cent in October after increasing 0.4 per cent in September, and advancing for a third straight month. Economists had expected a 0.4 per cent increase.
Gasoline station sales were flat in October after rising 0.9 per cent in September. Core retail sales excluding autos, gasoline and building materials rose 0.5 per cent, advancing for a fourth straight month.
Sales of building materials dropped 2.4 per cent last month after falling 0.6 per cent in September.
Reuters