Retail sales slip in October as consumers pull back after summer splurges

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Americans cut back on retail spending in October, ending six straight months of gains, though the decline was partly driven by falling prices for both gasoline and cars

NEW YORK — Americans cut back on retail spending in October, ending six straight months of gains, though the decline was partly driven by falling prices for both gasoline and cars.

Retail sales fell 0.1% last month after jumping a strong 0.9% in September, according to a report released Wednesday by the Commerce Department. September's figure was revised higher from an initial 0.7% gain. Excluding sales of gas and autos, retail sales ticked up 0.1%.

The figures reflect a slowdown in consumers' willingness to spend after a blowout summer. Consumer spending jumped in the July-September quarter, but economists forecast it will slow in the final three months of the year, as credit card debt — and delinquencies — rise and average savings fall.

Still, the decline was smaller than analysts expected. And excluding sales of autos, gas, building materials, and restaurant meals, the so-called “control group” of sales — which is used to calculate economic growth — rose 0.2%, after a 0.7% leap in September. The increase in control sales suggests consumers still have some spending power left.

“The October retail sales report was stronger than expectations, but confirmed a slowdown in consumption,” Ellen Zentner, chief U.S. economist at Morgan Stanley, wrote in a note to clients.

Most retail categories reported a drop in sales, including gas stations and auto dealers, which partly reflected price declines last month in both categories. Sales at furniture stores fell 2%, and general merchandise sales — a category that includes large retailers such as WalMart and Target