U.S. October retail sales climb
Pushed up mainly by auto sales
Auto sales pushed U.S. retail sales to a 1.4 per cent gain in October, the Commerce Department reported Monday.
New car sales were up 7.4 per cent, on a recovery after sales plummeted in September, following the expiry of the government's Cash for Clunkers purchase incentive program.
Excluding autos, retail sales rose 0.2 per cent, raising concerns about the vigour of the economic recovery. Consumer spending accounts for 70 per cent of total economic activity in the U.S.
The government also revised its retail sales figure for September, to 2.3 per cent from the 1.5 per cent reported earlier.
Furniture store sales fell 0.8 per cent. and electronics and appliances were off 0.6 per cent. Gasoline stations reported flat sales and grocery outlets a 0.2 per cent gain.
Department store sales rose 0.3 per cent, but sales at discount chains were up 0.8 per cent, supporting the belief that more consumers turn to discounters during downturns.
Millan Mulraine, economics srategist at TD Securities, said the report showed U.S. consumer spending is "slowly getting back on track, heading into the crucial holiday shopping season."
He noted this was the fourth monthly advance in retail sales in six, but with the jobs market still weak, predicted the rate of recovery to remain "relatively slow" and for the Federal Reserve to stick with its decision not to raise interest rates until early 2011.