October retail sales in the U.S. rebounded more than anticipated as demand for autos climbed, easing concern households will curtail spending after government incentives ended.
The 1.4% increase followed a 2.3% drop in the prior month that was much larger than previously estimated, making last month’s gain less impressive, Commerce Department figures showed today in Washington. Purchases excluding autos rose less than forecast.
Rising demand at retailers from discount chain TJX Cos. to luxury store Saks Inc. may foreshadow a brighter holiday shopping season. Acceleration in consumer spending, which accounts for 70% of the economy, will depend on an improvement in the labour market that has yet to unfold.
Retail sales were projected to rise 0.9% after an originally reported 1.5% decline in September, according to the median estimate of 66 economists in a Bloomberg News survey. Forecasts ranged from gains of 0.4% to 1.8%.
Excluding automobiles, sales increased 0.2% after a 0.4% gain in September. They were forecast to increase 0.4%, according to the survey median.
