US Retail Sales Up In September

Retail sales in the US went up for the third month in a row during September, posting a higher than expected rise that should mitigate concerns about a possible double-dip economic recession but doesn't indicate a very strong recovery.

Separately, consumer prices hardly changed in September, which once again showed that Federal Reserve may have to do something to deal with sustained weakness in the US economy amid fears of low inflation.

The Commerce Department said on Friday that retail sales went up 0.6 percent during September. Economists polled by Dow Jones Newswires had expected sales to increase by 0.4 percent.

The increase comes after a revised 0.7 percent rise in August, which was the biggest increase in five months. Initially, the Commerce Department expected August sales to increase by 0.4 percent.

Despite the increase in September, overall retail sales continue to be sluggish as the unemployment rate nears the highest level in 26 years. Consumers are holding back their spending amid a stubbornly depressed property market and tough job conditions.

Some retailers managed to attract shoppers by slashing their prices. The rise in retailers' sales has given some hope for the approaching holiday shopping season.

The rise in September retail sales was largely driven by purchases of electronics, auto parts, automobiles and appliances.

Meanwhile, clothing retailers reported a 0.2 percent fall in their sales.

Sales at book, sporting goods and music shops rose by 0.2 percent in September.

Sales at gas stations increased 0.4 percent in September, while food and beverage outlets also reported a 0.4 percent rise.