IBJNews

October retail sales post best showing since March

Back to TopCommentsE-mailPrintBookmark and Share

Retail sales, helped by strong demand for autos, increased in October by the largest amount in seven months.

The Commerce Department reported Monday that retail sales rose 1.2 percent last month. That was nearly double the gain that had been expected and the largest increase since March. Much of the strength came from a big rise in auto sales. Excluding autos, retail sales rose a more modest 0.4 percent.

October represented the fourth straight increase in retail sales after sales had fallen in May and June. Those declines had raised worries about the economic recovery.

While fears of a double-dip recession have eased, economists do not believe consumers will be able to spend at a fast enough pace to lift growth above the lackluster rates seen over the past six months.

The overall economy, as measured by the gross domestic product, grew at tepid rates of 2 percent in the July-September quarter and 1.7 percent in the spring. Those rates are less than half the pace normally registered after a recession.

The problem is that consumers are still struggling with a host of problems including painfully high unemployment, which remains stuck at 9.6 percent even though the recession ended more than a year ago.

For October, sales at auto dealerships increased 5 percent. That gain had been expected given reports from automakers that total October sales rose to an annual rate of 12.3 million units, the best monthly showing since the government's Cash for Clunkers program had sent sales surging in August 2009.

Excluding autos, sales advanced at a more moderate 0.4 percent in October following a 0.5-percent rise in sales excluding autos in September.

Outside of autos, sales at general merchandise stores, a category that department stores as well as big retail chains such as Wal-Mart, rose 0.2 percent in September after a slight 0.1-percent rise in September. Sales at specialty clothing stores did better, rising 0.7 percent after having fallen 0.4 percent in September.

The nation's big retailers had reported lackluster sales in October, with analysts blaming some of the weakness on an unusually warm October which lured shoppers to other activities and away from the malls.

The International Council of Shopping Centers said its index of sales turned in its poorest showing in October since last April.

Sales at hardware stores were up a solid 1.9 percent in October while sales at gasoline stations rose 0.8 percent, an increase that partly reflected higher prices at the pump.

Sales at furniture stores and electronics stores both posted 0.7-percent drops.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
ADVERTISEMENT