NEW YORK (Bloomberg) — Retail sales in the US climbed more than forecast in September, easing concern consumer spending will weaken and endanger the recovery.

Purchases rose 0.6 percent following a 0.7 percent gain in August that was larger than previously estimated, Commerce Department figures showed today in Washington. Other reports showed inflation cooled even further last month and manufacturing in the New York region accelerated.

Retailers like Target Corp. and Wal-Mart Stores Inc. are sweetening discounts and using promotions ahead of the holiday season to move merchandise as joblessness hovers near a 26-year high. Federal Reserve Chairman Ben Bernanke on Friday said gains in spending would probably be "uneven" because unemployment was too high, and indicated that additional monetary stimulus may be needed.

"They're reasonably solid consumption numbers," said Jim O'Sullivan, global chief economist at MF Global Ltd. in New York. "Momentum is going to be up again in the fourth quarter."

Retail sales were projected to rise 0.4 percent after a 0.4 percent gain previously reported for August, according to the median estimate of 80 economists in a Bloomberg News survey. Economists' estimates ranged from a decline of 0.1 percent to a gain of 0.8 percent.

The cost of living rose 0.1 percent in September, less than forecast, showing companies are finding it difficult to raise prices, figures from the Labor Department showed. Core prices, which exclude food and fuel costs, rose 0.8 percent in the past 12 months, the smallest year-over-year gain since 1961.

The Fed Bank of New York's general economic index rose to 15.7 in October, the highest level in four months and more than twice the median forecast of economists surveyed by Bloomberg. Readings greater than zero signal gains in the so-called Empire State Index covering New York, northern New Jersey and southern Connecticut.

The advance was broad-based, with clothing stores the only major category to show a decline in demand last month. Sales rose 1.6 percent at car dealers, their best performance since March.