WASHINGTON, Nov 14 - U.S. retail sales dipped in October as auto demand dropped, the government said on Friday in a report showing a second straight month of declining consumer activity after surges in July and August. Retail sales fell 0.3 percent last month to $318.5 billion after a downwardly revised 0.4 percent drop in September, the Commerce Department said. The slide, which was slightly larger than the 0.2 percent decline expected by Wall Street, came as auto sales fell 1.9 percent. Excluding the weak autos, sales actually rose 0.2 percent, matching analysts' forecasts. Retail spending has lost some momentum since a tax-cut induced shopping spree in July and August, but overall retail sales in October came in 6.1 percent above year-ago levels. Sales at gasoline stations slipped 1.6 percent while weaker spending also hit sporting goods and hobby stores, department stores and the food and beverage sector.//www.bloomberg.com