U.S. retail sales rise 1.4% in October

Retail sales rose more than expected in October due largely to a big rebound in auto sales. But broader consumer spending remains under pressure, raising questions about the durability of the recovery. The Commerce Department says retail sales rose 1.4% last month. Economists surveyed by Thomson Reuters had expected a gain of 1%. But excluding auto sales, retail demand rose 0.2%, half of the expected 0.4% rise. The government also revised the September performance down to show a 2.3% decline, from the 1.5% drop initially reported. The big swing in overall activity reflects the recent roller-coaster ride for auto sales. New car sales surged in August as shoppers rushed to take advantage of the government’s Cash for Clunkers sales incentives before they expired at the end of the month. Sales plunged in September. For October, auto sales jumped 7.4%, recouping about half of the 14.3% drop in September. Automakers already reported that their sales rebounded last month to an annual rate of 10.5 million units from 9.2 million in September.