WASHINGTON (Reuters–  1 hour 1 minute ago) - Retail sales rose broadly in October, suggesting the economy started the fourth quarter with some vigor, and the first drop in wholesale prices in four months pointed to subsiding inflation pressures.

Total retail sales increased 0.5 percent, the Commerce Department said on Tuesday, after rising 1.1 percent in September. That was above economists' expectations for a 0.3 percent rise.

In a separate report, the Labor Department said its producer price index fell 0.3 percent last month after rising 0.8 percent in September. Economists had expected the PPI to fall only 0.1 percent.

" The data are uniformly positive," said Eric Green, chief U.S. economist at TD Securities in New York. Retail sales " is more than enough to keep the economy going. They continue to push back the recession fears that began this summer."

The economy grew at a 2.5 percent annual pace in the third quarter, fueled in part by consumer spending.

U.S. stock index futures trimmed losses after the data, while government debt prices pared gains. The dollar held gains against the euro. In the 12 months to October, retail sales were up 7.2 percent. While October's retail sales report showed broad gains, weak income growth remains a constraint......//