October proved to be a strong month for US retailers, as consumer spending increased, fueling steady economic growth. According to the Commerce Department, retail sales rose by 0.4% from September, continuing the positive trend seen with the previous month’s 0.8% gain.
A 1.6% surge in auto sales led the gains, alongside a 2.3% rise in electronics and appliances stores and a 0.7% increase in restaurant and bar sales. While some of the spending growth reflected higher prices, much of it signaled increased consumer purchases.
Certain sectors, including furniture, clothing, and drug stores, experienced declines, which economists attribute partly to the impact of recent hurricanes. Conversely, home and garden stores saw growth, likely driven by rebuilding efforts after the storms.
Economists note that moderating inflation, now at 2.6%, is enabling consumers to spend more freely. Tim Quinlan of Wells Fargo observed that dining out remains a growing expense despite its cost, as bar and restaurant spending outpaces price increases.
With the holiday shopping season approaching, analysts anticipate a solid performance, though high prices may temper last year’s enthusiasm. The retail sales figures highlight the resilience of the economy, which expanded at a 2.8% annual rate last quarter and shows continued growth into the year-end.
