Washington, DC, November 14, 2006--Retail sales fell in October for the second month in a row, pushed lower by falling gasoline prices, the Commerce Department reported Tuesday.
Auto sales showed a surprising gain, while demand at most other stores was weak.
Retail sales fell 0.4% in October after sinking a downwardly revised 0.8% in September. Sales have risen in just two of the past six months. Retail sales are up 4.5% in the past 12 months.
Gasoline station sales fell 6% in October after an 11.1% drop in September, reflecting the sharp decline in pump prices. Excluding gasoline, retail sales rose 0.4%.
Motor vehicle sales rose 0.6% by dollar value, somewhat of a surprise given the 2.8% decline in unit sales reported earlier by the automakers. Excluding autos, retail sales dropped 0.4% after a 1.2% decline in September. Sales excluding autos are up 3.1% in the past year.
Sales excluding both cars and gas rose 0.3% for the second straight month. Economists expected a slightly larger 0.4% decline in October sales. They thought sales excluding autos would fall 0.2%.
Retail sales in the past three months are up 0.1% compared with the previous three months.
Sales were strong at food and drug stores, but weak in most other retail sectors. Demand for durable goods weakened. Food sales rose 1% in October. Sales at health and personal care stores rose 1.3%.
Sales at general merchandise stores fell 0.3%, the largest decline in 11 months. Department store sales fell 0.7% in October and are down 0.5% in the past 12 months.
Sales at hardware and garden stores dropped 0.3%. Sales at furniture stores fell 0.7%. Sales at appliance and electronics stores were flat.
Sales at clothing stores rose 0.1%. Sales at sporting goods, music and book stores fell 0.2%
