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Happy holiday harbinger?
Consumer spending in October comes in moderately above expectations, possibly signaling strength.
November 12, 2004: 9:41 AM EST

NEW YORK (CNN/Money) - U.S. consumers appear to be doing what they can to make this a jolly holiday season for retailers.

Retail sales in October rose modestly as shoppers hit the stores in search of seasonal merchandise, especially new clothes and accessories. The Commerce Department said Friday sales for the month rose 0.2 percent, compared with a revised 1.6 percent gain in September.

Excluding autos -- which account for about a quarter of total sales and can fluctuate widely from month to month -- sales rose 0.9 percent last month compared with a revised 0.8 percent gain in September.

Economists, on average, had expected total sales to rise 0.1 percent and sales excluding autos to rise 0.5 percent, according to Briefing.com.

"This is a solid gain again for retailers for the second month in a row," said Michael Niemira, chief economist and director of research with the International Council of Shopping Centers.

Added Niemira, "I suspect that a little bit of the gain is attributed to stronger pricing power, but overall the trends are very positive for retailers. The message from these numbers is that momentum is on the retailers' side as we move into the holiday season."

Industry watchers closely monitor sales during November and December, a two-month period that can account for as much as 50 percent of sales and profits for some merchants.

Clothing and accessories posted a 3 percent gain in October, up from a revised 1 percent gain in the previous month. Sales at gasoline stations jumped 4.3 percent.

General merchandise sales also rose 0.9 percent after a 1.3 percent rise in September.

However, it was a disappointing month for auto sales, which fell 2.2 percent. The pullback was expected after a strong 4.3 percent increase in September auto sales.

"No doubt the numbers look pretty good up and down the line," said Robert Brusca, chief economist with FAO Economics. "However, I'm not convinced yet that the holidays are home free."

"On the positive side, one survey suggests that more consumers this year are delaying their shopping until later in the season. If that's true, sales will get another boost in December," Brusca said.

"However, if the weather turns very cold and home heating bills go up, that will pressure consumers," he added. "Also, the employment picture is still not very clear. Yes, we had one big month in jobs growth in October but there are questions about how much of that really a post-hurricane bounce."  Top of page




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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2012 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2012 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2012. All rights reserved. Most stock quote data provided by BATS.