The Globe and Mail reports in its Friday edition that U.S. retail sales increased strongly in September likely as lower gasoline prices gave consumers more money to spend at restaurants and bars. A Reuters dispatch to The Globe says that the slightly stronger-than-expected rise in sales reported by the Commerce Department on Thursday also reflected sharp increases in receipts at clothing store outlets as well as miscellaneous store retailers. Consumers boosted on-line purchases and spent more at health and personal care stores. Spending and the overall economy are being underpinned by income growth, ample savings and strong household balance sheets. Though labour market momentum has slowed, layoffs remain historically low, supporting wage gains. Signs of the economy's resilience likely will not discourage the Federal Reserve from cutting interest rates again next month, but will cement expectations for a smaller 25-basis-point reduction in borrowing costs. "A November rate cut remains likely, but unless and until labour market data softens again, officials will talk less about 50-basis-point cuts and more about potentially 'pausing' cuts at an upcoming meeting," said Andrew Hollenhorst, Citigroup's chief U.S. economist.