Ahead Of The Bell: Retail Sales

WASHINGTON (AP) — Retail sales likely rose in October with part of the strength coming from a rebound in auto sales. Even with a gain, economists worry that consumer spending, the critical ingredient for overall economic growth, could falter in the months ahead.

Economists surveyed by Thomson Reuters predict retail sales increased 0.8 percent in October, rebounding from a 1.5 percent drop in September. They expect that excluding autos, retail sales rose 0.4 percent, following a 0.5 percent gain in September.

The Commerce Department is scheduled to release the report at 8:30 a.m. EST Monday.

The big swing in the overall number reflects that auto sales plunged in September after surging in August as buyers rushed to take advantage of the government's Cash for Clunkers incentives before the program expired at the end of the month.

Automakers already have reported that sales rebounded in October to an annual rate of 10.5 million units, significantly better than the 9.2 million in September.

Consumer spending, which accounts for 70 percent of total economic activity, is being closely watched to see whether households will continue helping the economy to emerge from the worst recession since the 1930s.