Washington — Consumers lost a little of their enthusiasm for auto purchases last month 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 by 1.6 percent in September, which had been the biggest gain in six months.
The slowdown last month reflected a big 2.2 percent decline in auto sales. Without this big decline, retail sales would have risen by 0.9 percent last month, the best showing since last May, as various sectors made significant gains.
Sales at clothing stores shot up 3 percent as cooler weather lured shoppers into buying winter clothes. Department stores gained 0.9 percent.
Both increases gave encouragement that consumers would 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 had worried that consumer confidence could falter because of the sharp runup in energy prices, but were encouraged by the widespread strength in retail sales outside of auto sales.
But analysts acknowledged that a 4.3 percent jump in sales at gasoline stations reflected higher pump prices rather than people driving more.
A Nordstrom store in Chicago displays sale signs Friday. Consumers slowed down on auto purchases last month but spent plenty on clothing and gasoline, the Commerce Department reported Friday.
Economists also were encouraged by a second report showing that the preliminary reading of consumer confidence in early November had risen to 95.5, up from 91.7 in October, a rebound that analysts said likely reflected in part relief that the uncertainty caused by the presidential election was over.
In a third report, the Commerce Department said that inventories held by businesses on shelves and backlots rose a slight 0.1 percent in September.
No comments
Commenting is turned off for this story.