skip to main content

US retail sales up in October

US retail sales - Rose 1.2% last month
US retail sales - Rose 1.2% last month

US retail sales rose faster than expected in October, official figures showed, with the auto sector leading the way.

Retail and food services rose 1.2% from September, according to the US Census Bureau, rising to over $373 billion.

That was much better than the 0.7% increase expected by economists.

Auto and other motor vehicle dealers saw business grow 5.7%, more than any other sector.

Top US carmakers had earlier reported strong sales in October.

GM, the nation's largest automaker, said it sold 183,759 vehicles in the United States in October, up 3.5% from a year ago.

Ford, the second-biggest automaker and the only one that did not take government aid during the financial crisis, reported October sales were up 19% to a total of 157,935 vehicles

Chrysler, which was also saved from ruin by a government bailout, said its car sales rose a strong 37% in October compared with a year earlier, marking the seventh consecutive month of increases.

Building material suppliers also saw business pick up significantly, while sales drops were seen in department, electronics and appliance and furniture stores.

Elsewhere, New York state manufacturing unexpectedly plunged in November, the first contraction since July 2009 when the US economy exited recession.

The Federal Reserve Bank of New York reported its manufacturing activity index dropped to minus 11.1 points in November, from a positive 15.7 points in the previous month.

The Empire State Manufacturing Survey index is considered a bellwether of the manufacturing sector which has been a key strength in the economic recovery.

It was the first time the index fell below zero since July 2009, the month after the worst recession in decades was officially declared over.

The sharp 27-point decline surprised analysts, who had forecast on average a slip to a positive 11.7-point reading.

The new orders index plummeted to minus 24.4 points, from positive 12.9 points in October.