WASHINGTON – Consumers lost a little of their enthusiasm for new vehicles in October but spent like mad in a number of other areas, including clothing and gasoline, the Commerce Department reported Friday.
Overall, retail sales were up 0.2 percent in October after having risen 1.6 percent in September, which had been the biggest gain in six months.
The slowdown last month reflected a 2.2 percent decline in auto sales. Without that big decline, retail sales would have risen by 0.9 percent last month, the best showing since May, as various sectors outside of autos made significant gains.
Sales at clothing stores shot up 3 percent as cooler weather lured shoppers into buying winter clothes. General department stores saw a solid gain as well, of 0.9 percent. Both increases gave encouragement that consumers will keep cash registers ringing during the all-important Christmas sales season.
“In October, people bought just about everything,” said Joel Naroff, chief economist at Naroff Economic Advisors. “Demand for clothing, furniture, general merchandise, food, restaurants and health products was solid.”
Analysts, who had been worried that consumer confidence could falter because of the sharp run-up in energy prices, took heart from the strength in retail sales, although they noted that the big 4.3 percent jump in sales at gasoline stations reflected higher pump prices rather than people driving more.
Economists were also encouraged by a second report showing that a preliminary reading of consumer confidence early this month rose to 95.5, up from 91.7 in October, a rebound that analysts said probably reflected in part relief that uncertainty caused by the presidential election was over.
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