2009, Cash For Clunkers | featured news

US retail sales rebounded in October as demand for cars continued to climb even after the expiration of government sponsored incentives.

Consumer spending plunged in September by the largest amount in nine months, reflecting the end of the government's Cash for Clunkers auto sales program. Incomes, the fuel for future spending, were flat.

U.S. auto sales boomed in August as consumers burned through $3 billion in government incentives, leaving automakers to contend with both inventory shortages and uncertain demand in the months ahead.

Retail sales unexpectedly fell 0.1% in July despite the debut of the government's "cash for clunkers" program. Separately, weekly jobless claims rose a bit.

Disappointing performance underscores concerns about the timing and durability of a recovery.