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U.S. consumers, after showing signs of fatigue in recent months in the face of rising gas prices, appear to be on the mend. The Commerce Department reported this morning that retail and food services sales rose 0.2 percent in October.
While 0.2 percent doesn't seem that impressive at first blush, keep in mind that auto sales, which account for about 1 of every 4 dollars spent by consumers, fell 2.2 percent last month. If you were to strip out that volatile category, retail sales would have risen a robust 0.9 percent from September 2004 levels.
Both the total sales figure and the sales figure minus the auto sector were above economists' forecasts.
Clothes and electronics could be big categories this holiday shopping season. The Commerce Department reported that clothing sales jumped 3 percent in October. And separately, a nationwide survey of consumers found that more than two thirds are planning to purchase some form of consumer electronics as gifts for the holidays.
Meanwhile, catalog and online companies continue to fare well, with a 0.8 percent uptick in sales last month.
