Hijjah 09, 1431 H/Nov. 15, SPA -- Retail sales, helped by strong demand for autos, increased in October by the largest amount in seven months, the Commerce Department said on Monday. The Commerce Department reported that retail sales rose 1.2 percent last month-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, as excluding autos, retail sales rose just slightly, at 0.4 percent. October represented the fourth straight increase in retail sales after sales had fallen in May and June. The overall economy, as measured by the gross domestic product, grew at a rate of two percent in the July to September quarter and 1.7 percent in the spring. Those rates are less than half the pace normally registered after a recession. The fact that unemployment remains at a high 9.6 percent is proving problematic. For October, sales at auto dealerships increased five percent. That gain had been expected given reports from automakers that total October sales rose to an annual rate of 12.3 million units, the best monthly showing since the government's "Cash for Clunkers" auto trade-in incentives program had sent sales up in August 2009. Excluding autos, sales advanced at a more moderate 0.4 percent in October following a 0.5 percent rise in sales excluding autos in September. Outside of autos, sales at general merchandise stores, a category that includes department stores as well as big retail chains such as Wal-Mart Stores Incorporated, rose 0.2 percent in September after a slight 0.1 percent rise in September. Sales at specialty clothing stores did better, rising 0.7 percent after having fallen 0.4 percent in September. The International Council of Shopping Centers said its index of sales turned in its poorest showing in October since last April. Sales at hardware stores were up 1.9 percent in October while sales at gasoline stations rose 0.8 percent, an increase that partly reflected higher prices at the pump. Sales at furniture stores and electronics stores both posted 0.7 percent drops.
