Weak retail sales suggest moderate fourth-quarter economic growth

By Lucia Mutikani WASHINGTON (Reuters) – U.S. retail sales rose less than expected in October amid a surprise decline in automobile purchases, suggesting a slowdown in consumer spending that could temper expectations of a strong pickup in fourth-quarter economic growth. “The weak reports will provide some cause for caution at the Fed, and while they are unlikely to change the prevailing bias for a December 'liftoff,' they could add to the case for a shallower tightening path thereafter,” said Millan Mulraine, deputy chief economist at TD Securities in New York The Commerce Department said retail sales edged up 0.1 percent last month after being unchanged in both September and August. A 0.9 percent drop in the value of sales at service stations, which reflected lower gasoline prices, also helped to restrain retail sales last month.

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Weak retail sales suggest moderate fourth-quarter economic growth