Consumers hit retail stores to give economy boost

By The Associated Press
Posted: 6:06 pm Tue, November 15, 2011

WASHINGTON — Consumers are giving a modest lift to the economy. They spent more on autos, electronics and building supplies in October to boost retail sales for the fifth straight month.

The gains provide an encouraging start for the October-December quarter just as separate reports show wholesale prices are flattening and U.S. shoppers are spending more at Wal-Mart, the world’s largest retailer.

“The consumer has to come through this holiday season if we are going to get back to more decent growth rates and the early readings are those households have hit the stores quite strongly,” said Joel Naroff, chief economist at Naroff Economic Advisors.

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.