Lynne Sladky / AP
A shopper carries purchases while shopping at Dolphin Mall, in Miami. Americans spent more on autos, electronics and building supplies in October, new data show.
By msnbc.com news services
Americans spent at a decent clip last month, driving U.S. retail sales up 0.5 percent in October amid gains in demand for autos and electronics.
The Commerce Department said U.S. retail sales rose more than expected as strong receipts from motor vehicle and building material dealers offset the drag from service stations, suggesting the economy started the fourth quarter with some vigor.
Total retail sales increased 0.5 percent, the Commerce Department said, after rising by an unrevised 1.1 percent in September.
The retail sales data were stronger than expected. Economists polled by Reuters had forecast retail sales climbing 0.3 percent last month. In the 12 months to October, retail sales are up 7.2 percent.
Another economic report released Tuesday showed companies paid less in October for gas, new cars and other goods, driving down wholesale prices for the first time since June.
The Labor Department said the Producer Price Index, or PPI, which measures price changes before they reach the consumer, dropped 0.3 percent in October after a rise of 0.8 percent in September. Excluding the volatile food and energy categories, the core index was unchanged for the first time in 11 months.
The report indicates inflation pressures are easing as the cost of oil and other commodities has declined.
Falling energy prices drove the overall decline in the PPI. Wholesale gas prices dropped 2.4 percent, while home heating oil fell 6 percent, the most in over a year.
Food prices ticked up 0.1 percent, after four months of much larger increases.
Here?s more from CNBC on the two reports:
The Associated Press and Reuters contributed to this report.
Source: http://bottomline.msnbc.msn.com/_news/2011/11/15/8816512-americans-spent-at-a-decent-clip-last-month
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