A gauge of U.S. consumer spending rose in September as Americans likely snapped up Apple's new iPhone and bought leisure goods, but falling car sales pointed to sluggish economic growth.
And even the signs of strength could be short-lived as other data on Tuesday showed consumer confidence tumbled in October as a partial government shutdown rattled households.
With lawmakers still to agree on a budget, economists fear another damaging fight might be in the cards early next year.
Excluding automobiles, gasoline and building materials,retail sales increased 0.5 percent last month after a 0.2 percent gain in August, the Commerce Department said.
This so-called core sales gauge corresponds most closely with the consumer spending component of gross domestic product. Economists polled by Reuters had expected core retail sales to increase 0.4 percent in September.
Spending has been supported by rising home and share prices, and low gasoline prices. But even against that positive backdrop, weak consumer morale could crimp future sales growth.
In a separate report, the Conference Board, an industry group, said its index of consumer sentiment dropped to a six-month low of 71.2 in October from 80.2 in September.
The survey also showed a deterioration in households' perceptions of the labour market in October, which suggests hiring may have slowed.
Source: Reuters
