(fxcue news) - Partly reflecting a jump in sales by motor vehicle and parts dealers, the Commerce Department released a report on Friday showing retail sales in the U.S. increased by slightly more than expected in the month of October. The Commerce Department said retail sales rose by 0.4 percent in October after growing by an upwardly revised 0.8 percent in September. Economists had expected retail sales to climb by 0.3 percent compared to the 0.4 percent increase originally reported for the previous month. "The solid rise in retail sales in October comes on the heels of a sharply revised higher spending splurge in September, which indicates that consumers maintained upbeat spending momentum at the start of Q4," said Nationwide Chief Economist Kathy Bostjancic. She added, "This supports our forecast that GDP growth expands a solid 2% this quarter, albeit a moderation from the 2.8% growth in Q3." The slightly stronger than expected retail sales growth came as sales by motor vehicle and parts dealers shot up by 1.6 percent in October after rising by 0.2 percent in September. Excluding the increase by auto sales, retail sales inched up by 0.1 percent in October after jumping by 1.0 percent in September. Ex-auto sales were expected to rise by 0.3 percent. The uptick by ex-auto sales came as a sharp increase in sales by electronics and appliance stores and a notable advance in sales by food services and drinking places were partly offset by significant decreases in other areas. Sales by sporting goods, hobby, musical instrument and book stores; health and personal care stores; furniture and home furnishing stores and miscellaneous store retailers all saw steep drops during the month. The Commerce Department also said core retail sales, which exclude automobiles, gasoline, building materials and food services, edged down by 0.1 percent in October after surging by an upwardly revised 1.2 percent in September.