Auto sales increased by the most in almost eight years, spurred by the Obama administration's cash incentive to trade in older models for new, more fuel-efficient vehicles. The gain in spending was broad-based as 11 of 13 categories registered increases, easing concern that rising unemployment and a record loss of household wealth will cause Americans to retrench. Excluding automobiles, the increase in sales was the biggest in six months.

The auto plan, which ended Aug. 24, offered buyers discounts of as much as $4,500 to trade in older cars and trucks. The program prompted almost 700,000 purchases, the Transportation Department said.

Sales at automobile dealerships and parts stores jumped 11 percent, the most since October 2001 when carmakers such as General Motors Corp. offered zero-percent financing to spur sales following the terrorist attacks the previous month.

Service stations, clothing, sporting goods and general merchandise stores all recorded gains in excess of 2 percent last month, today's report showed. Only furniture and building- material stores showed losses.

Excluding autos, gasoline and building materials -- the retail group the government uses to calculate gross domestic product figures for consumer spending -- sales increased 0.7 percent, after a 0.3 percent decrease. The government uses data from other sources to calculate the contribution from the three categories excluded.

Consumer spending, which accounts for 70 percent of the economy, is projected to grow at a 1.7 percent pace from July through September and then slow to 1 percent in the last three months of the year, according to the median estimate of economists surveyed this month by Bloomberg News.