U.S. Economy: Retail Sales Rebound From Year’s Biggest Drop

By Shobhana Chandra

Nov. 16 (Bloomberg) — Retail sales in the U.S. rebounded more than forecast as demand for autos climbed, and a regional gauge of manufacturing showed expansion for a fourth month, easing concern the recovery will cool after government incentives end.

Purchases increased 1.4 percent in October after a 2.3 percent drop in September that was larger than the previously estimated, Commerce Department figures showed today in Washington. The Federal Reserve Bank of New York’s general economic index, where positive readings signal growth, fell to 23.5 this month from a five-year high of 34.6 in October.

Stocks added to a global rally after the reports signaled rising demand at retailers from discount chain TJX Cos. to luxury store Saks Inc. may foreshadow a better holiday shopping season, while General Motors Co. said demand is holding up this month. Additional gains in consumer spending will depend on an improvement in the labor market that has yet to unfold.

Read More at Bloomberg.com

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