United States witnessed a decline of 1.5 per cent in retail sales during September, however sales excluding automobiles soared by a bigger than expected 0.5 per cent in the same month.

Economists had projected an increase of 0.2 per cent in retail sales excluding autos for the month of September, while decline in overall sales were forecast at 2.1 per cent.

It was the second consecutive increase in retail sales excluding autos, providing a cautious optimism that consumer spending could boost economic recovery.

Jumped sales of furniture, general merchandise and cloths pushed the retail sales up.

Speaking on the issue, economist Mark Zandi said, "American consumers look like they are making their way back. They are cautious but they are no longer panicked."

The US consumer confidence was also enhanced by the better-than-expected earning reported by chipmaker Intel Corp. and banking giant JP Morgan Chase & Co.

It is worth mentioning here that consumer spending accounts for around 70 per cent of the entire economic activity in the US.

On Wednesday, the Dow Jones industrial average gained 144.80 points to touch 10,015.86 on Wednesday. It was its biggest increase since August 21 as well as the highest close since October 3 previous year.