U.S. consumer sentiment improved in a mid-November reading, according to a report released today. Meanwhile October retail sales, excluding autos, came in higher than expected.

The University of Michigan said its consumer-sentiment index rose to 95.5, from 91.7 at the end of October. Economists had expected a more modest rise to 93.

In a separate release, the U.S. Commerce Dept. said retail sales rose 0.2% last month. The rise was in line with expectations, but down from a revised 1.6% increase in September.

The slowdown was largely due to a 2.2% drop in motor vehicles and parts. Auto sales jumped 4.3% in September amid favorable financing and other incentives.

While auto sales slipped in October, all other retail sales jumped 0.9%. Economists had expected ex-auto sales to ris by only 0.6%.

Separately, the Commerce Dept. reported that business inventories rose a surprising 0.1% in September to a seasonally adjusted US$1.258 trillion. The pace slackened, however, from the 0.7% advance in August, as auto stocks shrank at the sharpest rate in more than a year. Economists had expected a 0.4% increase.

Business sales rose 0.3% in September, half the previous month’s pace.