US consumers grew more cautious last month after a big spending spree in September, with retail sales edging up just 0.2 per cent, the government reported today.
The Commerce Department said that the small October increase followed a huge 1.6 per cent jump in September, which had been the best showing in seven months.
The slowdown last month reflected a big 2.2 per cent decline in car sales.
Without this big decline, retail sales would have risen by 0.9 per cent last month, the best showing since last May, as various sectors outside of autos showed significant strength.
Consumer spending, which accounts for two-thirds of the total economy, is being closely watched as retailers head into the all-important Christmas shopping season. The big jump in oil prices earlier this year jolted consumers and slowed the overall economy dramatically.
However, in recent months, growth has rebounded and analysts are forecasting that the economy should finish the year on a strong note.
This view was bolstered last week with a report that businesses created 337,000 jobs in October, the best showing since March and double what had been forecast.