Hurricane Sandy Seen as Hampering Car Sales Retail sales in the United States fell in October for the first time in three months as Hurricane Sandy slowed automobile purchases and suggested that spending early in the fourth quarter had lost some momentum. Shoppers at a mall in Paramus, N.J. The hurricane helped some retailers, but it hurt others. Other data on Wednesday showed wholesale prices falling last month for the first time since May, giving the Federal Reserve latitude to maintain its monetary policy. Retail sales dipped 0.3 percent after a 1.3 percent increase in September, the Commerce Department said. Economists had expected sales to fall 0.2 percent. "Sandy was a drag, but I expect we will see a gain in sales in November," said Augustine Faucher, a senior economist at the PNC Financial Services Group in Pittsburgh. Part of the drop in sales could be a sign of hesitation among consumers facing the prospect of higher taxes next year if Congress cannot resolve the standoff on automatic tax increases and government spending cuts. The tax increases and spending cuts may siphon about $600 billion from the economy next year if Congress fails to act to avert them. The fiscal uncertainty has already eroded business confidence. "It's imperative that policy makers address the looming fiscal cliff now to give consumers some certainty heading into the holiday shopping season," said Matthew Shay, president of the National Retail Federation. Carmakers blamed Sandy, the huge storm that lashed the densely populated East Coast and caused up to $50 billion in damage, for the abrupt halt in sales last month. Automakers said traffic at East Coast dealerships slowed as residents began to brace for the storm, which hit at the end of the month. Sales tend to build up late in the month, which probably amplified the impact. The Ford Motor Corporation estimated the industry lost sales of 20,000 to 25,000 vehicles, while Toyota put the loss at 30,000. The Commerce Department said it had received indications from companies that the storm had both positive and negative effects on retail sales over all, but was unable to quantify them. The storm probably slowed sales at clothing stores; it probably raised receipts at food and beverage stores. Economists expect the storm could shave as much as half a percentage point from economic growth in the fourth quarter. Any lost activity, however, could be made up early next year. That will come back in the first quarter. Spending on rebuilding will filter into growth numbers gradually over a number of quarters," said Julia Coronado, chief North America economist at BNP Paribas in New York. Separately, the Labor Department said its producer price index slipped 0.2 percent last month, the first decline since May. The index had increased 1.1 percent in September. Economists had expected the index, which details prices received by farms, factories and refineries, to increase 0.2 percent last month. Excluding volatile food and energy costs, wholesale prices also fell 0.2 percent.