Retail sales up 0.5 percent in October

WASHINGTON -- Americans spent more on autos, electronics and building supplies in October. The fifth straight monthly gain in retail sales suggests the economy maintained solid growth at the start of the fourth quarter.

Retail sales increased 0.5 percent, the Commerce Department said Tuesday. Healthy auto sales helped. But even without them, sales rose 0.6 percent -- the best showing since March.

And when excluding autos and sales at gasoline stations, sales rose 0.7 percent, also the biggest increase since March.

Sales also rose at grocery stores, bars and restaurants and health care stores but sales at department stores and specialty clothing stores fell.

Overall, the data were encouraging. Economists said the sales suggest the economy is growing at roughly the same 2.5 percent annual pace as the July-September quarter.

"Although consumer spending is not particularly robust, households do continue to spend and provide moderate support for the overall economy," said Steven A. Wood, chief economist at Insight Economics.

Wal-Mart Stores Inc. Tuesday reported its first quarterly gain in revenue at stores opened at least a year after nine consecutive quarters of declines at its branded U.S. business.

That the world's largest retailer is turning a corner is a positive sign for the retail industry and the U.S. economy as a whole.

The 1.2 percent drop in sales at department stores followed a 1 percent increase in September. The October decline was probably influenced by the weather. Warm weather at the beginning of the month depressed demand for winter clothing, while a snowstorm in the Northeast cut into shopping at the end of the month.

Specialty clothing stores saw sales drop 0.7 percent after a 1.7 percent increase in September. -- AP