Retail Boom Led By Auto Sales
The AP reports:
WASHINGTON (AP) — 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.
