Retail Sales Higher Than Expected in October

Washington, DC, Nov. 16, 2009--Retail sales rose more than expected in October thanks to a big rebound in auto sales, according to the Commerce Department.

However, broader consumer spending remains under pressure.

The Commerce Department said Monday that retail sales rose 1.4 percent last month. Economists had expected a gain of 1 percent.

But excluding auto sales, retail demand rose 0.2 percent, half of the expected 0.4 percent rise. The government also revised the September performance down to show a 2.3 percent decline, from the 1.5 percent drop initially reported.

The 0.2 percent increase in retail sales excluding autos was down from a 0.4 percent rise in September and was the weakest showing since a 0.5 percent drop in July.

Sales also fell 0.8 percent at furniture stores and 0.6 percent at electronics and appliance stores.