The US has seen its retail sector enjoy a marked upturn in performance, after automotive sales helped drive a September growth spurt.

Seasonally adjusted figures for the month showed a rate of growth that doubled analyst expectations, as the 0.7 per cent rise marked the largest hike in sales since March.

Automotive sales rose by 4.2 per cent, while other retail sector sales increased by 0.6 per cent.

Drew Matus, an economist with Lehman Brothers, told CBS that the retail growth rate "was a very strong number no matter how you cut it".

In comparison to the same period last year total retail sales are now up 7.7 per cent for 2004.

Analysts pointed to a number of incentives at auto dealerships as a key factor in the rising sales, but industry observers say the scale of the rise offers some genuinely encouraging signs for the US automotive industry.