U.S. retail sales rose by the most in four months in October as households bought a range of goods despite the 16-day federal government shutdown, the government reported Wednesday, suggesting momentum in the economy early in the fourth quarter. The Commerce Department said retail sales rose 0.4 percent last month following no gain in September. Sales were limited by a sharp decline in gasoline stations. Excluding sales at gasoline stations, retail spending rose 0.5 percent. Core retail sales, a category that excludes volatile spending on autos, building supplies, and gasoline, also rose 0.5 percent in October, up from 0.3 percent the previous month. The gain in retail sales indicates that consumers increased spending at the start of the October-December quarter. Consumer spending accounts for 70 percent of U.S. economic activity. The report suggested little impact from the partial government shutdown, which economists had expected would reduce sales. Cheaper gasoline may help increase sale of other items during the key holiday shopping season. Fuel prices have fallen sharply since early September and now average $3.21 a gallon (3.8 liters), the lowest level in almost two years.
