Retail sales up solidly in October as Americans showed continued willingness to spend
Americans stepped up their spending at retailers last month in the latest sign that healthy consumer spending is driving the economy’s steady growth
WASHINGTON — Americans stepped up their spending at retailers last month in the latest sign that healthy consumer spending is driving the economy's steady growth.
Retail sales rose 0.4% from September to October, the Commerce Department said Friday, a solid increase though less than the previous month's robust 0.8% gain.
A 1.6% jump in sales at auto dealers drove much of the gain. Purchases climbed 2.3% at electronics and appliances stores and 0.7% at restaurants and bars. Though some of October's rise in retail sales reflected higher prices, it mainly indicated increased purchases.
Sales in some categories fell — furniture stores, clothing outlets and drug stores, among them — though economists said that weakness likely resulted, at least in part, from last month's hurricanes. Sales at home and garden stores rose, potentially reflecting rebuilding activity after the storms.
“The moderation in the pace of price growth is allowing consumers to ratchet up spending,” said Tim Quinlan, an economist at Wells Fargo. “People may not love how much it costs to go out to eat, but their bar and restaurant spending is growing faster than prices are.”
Friday’s report arrives as retailers are poised to enter the critically important holiday shopping season in less than two weeks. Analysts envision a solid holiday shopping season, though perhaps not as robust as last year’s, with many shoppers under pressure from overall still-high prices despite the easing of inflation.
The latest retail sales figures suggest that the economy is growing briskly again in the current October-December
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