MNI DATA ANALYSIS: US October Retail Sales Rise 0.8%>

--Initial Claims Up 2k To 216k In Nov 10 Wk, 4-wk Avg Rises To 215k

--September Import Prices Rise 0.5%, Exports Up 0.4%

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - The value of retail sales rose by 0.8% in 

October overall and rose 0.7% excluding motor vehicle sales, above 

expectations for 0.5% gains in both categories, but following a downward 

revision to sales in September, data released by the Commerce Department 

Thursday showed. 

     The impact from Hurricane Michael can be seen in strong gains made 

by gas station sales. 

--MOTOR VEHICLE, GAS SALES RISE

     Motor vehicle sales posted a 1.1% increase, led by the replacement 

of vehicles in the Southeast, while gasoline station sales rose by 3.5% 

in October after a 0.4% decline in September. Outside of both motor 

vehicles and gasoline, retail sales posted a 0.3% gain. 

     Clothing stores sales rose by 0.5% in the month, while building 

materials sales increased 1.0%. Sales of building materials are likely 

to be lifted in the coming months by rebuilding efforts in the 

hurricane-impacted regions. 

     Food services and drinking places' sales fell by 0.2% and 

electronics store sales rose by 0.7%. Retail sales excluding autos, 

gasoline, and building materials were up 0.3% in October. Further, 

excluding food services as well as the other three measures, retail 

sales were up 0.3% after a 0.3% gain in September, suggesting underlying 

growth. 

--4Q CONSUMPTION POSTS GAINS

     Incorporating the downward revisions to September and August sales, 

fourth quarter retail sales were up 2.9% at an annual rate from the 

third quarter average, suggesting upward momentum. 

     In October, the first month of the 4th quarter,sales excluding 

motor vehicles were up 2.7%, at an annual rate from the previous 

quarter, while sales excluding autos, building materials, and gas were 

up 0.8%. Even when food services were also excluded, fourth quarter 

sales were up 2.1% at an annual rate from the third quarter, pointing to 

underlying strength outside the volatile categories. 

--JOBLESS CLAIMS, 4-WK AVG RISE         

     Initial jobless claims were up 2k to 216k in the Nov 10 week. The 

4-wk moving average was up 1,500 to 215k. The average would be unchanged 

in the Nov 17 week as the 216k figure from the Oct 20 week rolls out. 

Continuing claims were up 46k at 1.676m. The 4-wk average was up 8,750 

to 1.644m, and the insured unemployment rate was 1.2%. 

--IMPORT, EXPORT PRICES UP

     Import prices were up 0.5% in October, up 0.2% ex. petro. Petroleum 

imports were up 2.8%. Export prices were up 0.4%, and up 0.5% ex. 

agriculture. Agricultural exports were down 0.3%.Import prices from 

China were down -0.1%, Mexico up 0.4%, the EU up 0.2%, and Canada up 

1.3%. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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