NEW YORK — Retail sales rose more than expected in October largely because of a big rebound in auto sales. But broader consumer spending remains under pressure, raising questions about the durability of the recovery.
Last month’s jump in sales also followed a dismal September retail performance that was revised even lower by the government, and many analysts remain concerned about consumer demand going forward.
“Against a background of high unemployment, low income growth and tight credit, it seems unlikely that households will be able to spend more freely anytime soon,” Paul Dales, U.S. economist at Capital Economics, wrote in a research note.
The Commerce Department said Monday that retail sales rose 1.4 percent last month. Economists surveyed by Thomson Reuters had expected a gain of 1 percent.
Meanwhile, Federal Reserve Chairman Ben Bernanke said the central bank will keep a close eye on the sliding U.S. dollar even as he pledged anew to keep interest rates at record lows. The Associated Press
