WASHINGTON (Reuters) — Sales at United States retailers rose more than expected in October to post their largest gain in seven months, helped by purchases of motor vehicles and building materials, according to a government report on Monday that was further evidence the economy was regaining strength. þþThe Commerce Department said total retail sales increased 1.2 percent, the biggest rise since March, after advancing by an upwardly revised 0.7 percent in September. þþThe fourth monthly increase in retail sales was the latest in a series of data implying the economy’s recovery from worst recession since the 1930s was regaining momentum after hitting a soft patch in the summer. þþSeptember sales had been previously reported to have increased 0.6 percent. Analysts polled by Reuters had forecast retail sales rising 0.7 percent last month. Compared to October last year, sales were 7.3 percent higher. þþMotor vehicle and parts purchases surged 5.0 percent, also the largest increase since March, after rising 1.5 percent in September. Excluding autos, sales rose 0.4 percent last month, matching market expectations, after a 0.5 percent increase the prior month. þþBuilding materials and garden equipment sales rose 1.9 percent last month, the largest gain since April, after increasing 1.3 percent in September. þþOctober’s retail sales report showed gains across most categories, offering hope that consumers will support the economy, despite a 9.6 percent unemployment rate. Data so far for October, including nonfarm payrolls and manufacturing, have pointed to a pick-up in the growth pace. þþRetail sales in October were also lifted by receipts at gasoline stations, which rose 0.8 percent after increasing 1.2 percent in September. Clothing and clothing accessories sales gained 0.7 percent, while receipts at sporting goods, hobby and book stores rose 1.0 percent, the largest increase since March. þþCore retail sales, which exclude autos, gasoline and building materials, rose 0.2 percent after a 0.4 percent increase in September. þþCore sales correspond most closely with the consumer spending component of the government’s gross domestic product report. Spending, which accounts for 70 percent of the nation’s economic activity, increased at a 2.6 percent annual rate in the third quarter. þþBut purchases at electronics and appliance stores fell 0.7 percent in October. Furniture sales also fell 0.7 percent last month. þþ
Source: NY Times
