Retail sales rise in October, boosted by auto sales

There is word that General Motors plans to start paying back some of the billions of dollars in federal bail-out money though analysts are quick to point out that is not a signal the nation's largest car maker or the auto industry is back on solid ground.

In fact, as the important holiday spending season gets underway for retailers there seems to be as many questions, as answers when it comes to the economy.

The economic engine is apparently running again for the U.S. auto industry.

"We actually generated cash in this period," said General Motors CEO Fritz Henderson.

Cutting jobs and closing dealerships, a more efficient General Motors generated 3-point-3 billion dollars in the third quarter and announced Monday it would use some of that capital to begin paying back government loans.

"I think we certainly feel that repaying the loan portion of the taxpayer support is a personal commitment. We feel very strongly about it. We felt that we're capable of beginning that now and we start the process 1.2 billion dollars in December," Henderson said.

While the auto market seems to be stabilizing the question remains.

Will there be enough consumers to buy cars or anything else for that matter as we begin the critical holiday shopping season.

Data released Monday shows, retail sales were up 1.4-percent in October, the rebound in auto sales getting most of the credit.

The big-box retailers are mixed, some up others down.

A bump in sales of apparel, sporting goods, books and music
off-set by a continued slump in the housing industry.

On Monday, Federal Reserve Chair Ben Bernanke outlined the lingering wave of economic uncertainty.

"Today, financial conditions are considerably better than they were then, but significant economic challenges remain. The flow of credit remains constrained, economic activity weak, and unemployment much too high," said Bernanke.

In an economy that remains much too volatile.

Many economists believe there is still a threat of a so-called "double-dip" recession with a rebound in growth for a few quarters followed by a slip back into a recession.