WASHINGTON, Nov 14: US retail sales were flat in October as shoppers deserted car showrooms but rushed to buy warm clothes for winter, government figures showed on Thursday.

Retail sales — critical because consumer spending accounts for two-thirds of US economic activity — had been expected to dip after car dealers reported waning interest from buyers.

The flat performance in October followed a 1.3-per cent slump in September, the government said. Excluding auto sales, however, retail sales climbed 0.7 per cent in October, the steepest rise in six months.

Sales in clothing stores shot up 4.0 per cent in October, the steepest gain this year, as cold weather spurred buying. Gasoline sales rose 1.5 per cent. Department stores reported a 1.1-per cent gain in sales.

But auto dealerships suffered the hangover after many months of strong sales spurred by zero-per cent interest financing offers. Auto sales dropped 1.9 per cent after slumping 5.0 per cent in September.—AFP