Retail spending sees solid rise in October

Americans spent more on autos, electronics and building supplies in October, pushing retail sales up for a fifth straight month. A report released by the Commerce Department today suggests the economy maintained solid growth at the start of the fourth quarter. Retail sales increased 0.5% on the month, helped by a healthy auto market. But even without vehicles, sales rose 0.6%—the best showing since March. And when excluding autos and sales at gasoline stations, sales rose 0.7%, also the biggest increase since March. Overal retail sales increased even though sales at department stores and specialty clothing stores fell in October. The retail sales report is the government’s first look each month at consumer spending, which accounts for 70% of economic activity. The National Retail Federation, the nation’s largest retail group, predicts revenue in November and December will rise 2.8% this year compared to last year—smaller than last year’s 5.2% increase, but higher than the average increase over the past 10 years. Read the full article by The Associated Press here.