Oct. sales promise bit of relief to stores

NEW YORK — The early picture of October retail sales shows more signs of a spending recovery, lifting hopes for a slightly merrier holiday season and for the overall economy.

The brighter outlook among analysts comes ahead of Thursday’s sales reports from major retailers, which are expected to show the second consecutive monthly gain after more than a year of declines.

Shoppers are treating themselves to little indulgences like boots and purchasing some merchandise at full price.

SpendingPulse, a service of MasterCard Advisors, reported Wednesday that jewelry (up 7.2 percent) and clothing (up 3.4 percent) showed signs of life in October compared with a year earlier, when spending was in a free fall. But those figures were well below the levels two years ago and only slightly better than 2005. SpendingPulse estimates sales in all payment forms including cash and checks.

Apparel retailers T.J. Maxx to J. Crew Group Inc. and others have raised their profit outlooks in recent weeks.

Consumer spending accounts for about 70 percent of all economic activity by federal measures, so evidence consumers are opening wallets a little more could provide incentive for factories to step up production of goods.

Signs of life in spending “should offer evidence that these businesses need to start boosting their investment to feed this return of consumer demand,” said Frank Badillo, senior economist at consulting group TNS Retail Forward.

Cooler weather helped October sales of plaid shirts and leggings. Ken Perkins, president of retail research firm Retail Metrics, said early holiday discounts also may have drawn shoppers last month.

There’s concern about the fragility of American consumers who continue to grapple with weak employment. More than 6 million additional people were jobless in September than a year earlier.

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