Washington, DC, November 15, 2005--Retail sales fell 0.1 percent in October reflecting a drop in automotive car purchases, according to the Commerce Department.
Economists were expecting a drop of 0.7 percent during the month. September's gain was revised to 0.3 percent from a rise of 0.2 percent.
Auto sales dropped 3.6 percent during the month.
Excluding autos, retail sales rose 0.9 percent, compared with expectations for a 0.2 percent advance and following a revised 1.4 percent increase in September.
Part of the overall weakness was due to a price effect after gasoline fell sharply from a peak hit after hurricanes Katrina and Rita drove prices above $3 a gallon.
The Commerce Department said that October gas station sales were down 0.8 percent, the largest drop since December 2004. Retail sales excluding motor vehicles and gasoline advanced 1.1 percent after growing by 0.8 percent the previous month.
