WASHINGTON (UPI) -- The U.S. Commerce Department said Friday retail sales rose 0.2 percent in October after jumping a revised 1.6 percent in September. Commerce originally reported retail sales rose 1.5 percent in September.

The Commerce Department's retail sales report is a key indicator of spending by Americans. Consumer spending makes up about two-thirds of gross domestic product and is closely watched by those trying to gauge economic performance.

The report showed a 2.2 percent decline in motor vehicles and parts demand acted to push overall sales lower in October.

Auto sales had climbed 4.3 percent in September on the strength of favorable financing and other incentives.

While auto sales slipped last month, all other retail sales climbed, rising 0.9 percent -- the biggest increase since going up at the same rate in May, Commerce said.

Demand climbed at retail outlets selling gasoline, general merchandise, food and beverages, clothing and furniture.

Wall Street economists had expected overall retail sales to rise 0.2 percent. But, also expected a 0.6 percent rise in sales ex-autos.

The report showed gasoline station sales jumped 4.3 percent after rising 0.5 percent in September.

Sales at food and beverage stores rose 0.4 percent, improved 0.3 percent at furniture stores, 0.5 percent at health and personal care stores, 1 percent at eating and drinking places, 0.9 percent at general merchandise stores, and 3 percent at clothing stores.

Copyright 2004 by United Press International