Americans stepped up their spending at retail businesses in September, reflecting their growing confidence in the US economy.
Retail sales rose 1.1% last month, the Commerce Department said today. That followed a 1.2% increase in August, which was revised slightly higher.
Both were the largest gains since October 2010. Sales rose in most major categories, the figures noted.
Electronics and appliance store sales jumped 4.5%. The increase was driven in part by the latest iPhone, which Apple began selling last month.
Sales at car dealers increased 1.3%. Petrol station sales also rose 2.5%, reflecting higher prices. Excluding cars and fuel, sales were still up a solid 0.9% in September.
One area of weakness was department store sales, which fell 0.2% after no change in August.
The retail sales report is closely watched because it is the government's first look at consumer spending each month. Consumer spending drives nearly 70% of economic activity.
High unemployment and weak pay increases have kept consumers from spending more freely. That has held back growth. The economy grew at a weak 1.3% rate in the second quarter. Most economists believe growth will stay around 2% for the rest of the year.
Despite the weak growth, consumers grew more confident in September. The Conference Board reported its confidence index rose last month to the highest reading since February.
The jobs market also looked a little better in September. The unemployment rate dropped to 7.8% from 8.1% in August. It was the first time the rate has been below 8% since January 2009.
And US car companies reported that sales rose 13% in September from a year earlier to nearly 1.2 million. Analysts think sales could hit 14.3 million this year, up from 12.8 million last year.
The Federal Reserve's aggressive policies have kept interest rates low, encouraging some Americans to replace aging vehicles.
