U.S. retail sales jump in October

U.S. retail sales jumped in October, pointing to sustained consumer spending and economic strength in the fourth quarter of the year, the Commerce Department reported Tuesday.

Retail sales edged up 0.8 percent from the previous month to a seasonally adjusted 465.9 billion U.S. dollars in October, after an upwardly revised 1 percent gain in September, the Commerce Department said. Compared with a year earlier, total retail sales rose 4.3 percent last month.

Purchases of motor vehicle and parts rose 1.1 percent in October, sales at sporting goods, hobby, book and music stores rose 1.3 percent, and online retailers' sales climbed 1.5 percent. Excluding the volatile auto sales, total retail sales rose 0.8 percent last month, the Commerce Department said.

As consumer spending was a major driver of U.S. economic growth, Tuesday's strong retail sales data suggested sustained economic strength in the fourth quarter of the year that would pave the way for the Federal Reserve to raise interest rates in December.

The U.S. economy grew at an annual rate of 2.9 percent in the third quarter of the year, beating market expectation of 2.6 percent and higher than 1.4 percent in the previous quarter, according to the Commerce Department.

Fed Vice Chairman Stanley Fischer said last week that the case for removing monetary accommodation gradually was "quite strong", suggested the central bank inched closer to another rate hike at its next policy meeting on Dec. 13-14.

Most Fed officials have indicated that they would back another rate hike before the end of the year if the U.S. economy remains on track. Enditem