Retail sales rise faster than expected in October, despite painfully high inflation

Spending at retail stores rose faster than expected in October as consumers continue to open their wallets despite scorching hot inflation

Retail sales, a measure of how much consumers spent on some everyday items, including cars, food and gasoline, rose 1.3% in October, the Commerce Department said Wednesday. Economists surveyed by Refinitiv had expected sales to increase 1%.

That’s a significant increase from September data, which showed stagnant retail sales.

October’s prepayment is not adjusted for inflation – which rose 0.4% last month – meaning consumers could be spending the same amount but getting less bang for their buck.

Also Read :  What entrepreneurial CEOs in the EdTech sector must think?

INFLATION COULD HIT SOME ARISING TWICE

US economy retail sales

Shoppers walk through a store at Tysons Corner Mall in Tysons, Virginia, on April 2, 2022. ((Photo by STEFANI REYNOLDS/AFP via Getty Images) / Getty Images)

“Although Target reported disappointing third-quarter results, the October retail sales report shows that the US consumer continues to be more discerning in spending,” said Quincy Krosby, chief global strategist for LPL Financial. “Although credit cards are being used more frequently, consumers are taking advantage of holiday sales earlier than usual.”

Sales were likely boosted by a one-time incentive check worth up to $1,050 in California, as well as early holiday sales launched by some retailers.

Also Read :  Ten Cheapest Stocks In The Market

Motor vehicles led the increase in sales last month, with spending at car dealers up 1.3%. Furniture store sales increased 1.1%.

Higher gasoline prices also boosted sales, and receipts at service stations rose 4.1% as the cost of fuel rose again last month.

Gas station off in the distance

Gas prices are listed at a station in Los Angeles, California on July 19, 2022. (Frederic J. Brown/AFP via Getty Images) ((Frederic J. Brown/AFP via Getty Images) / Getty Images)

Meanwhile, online retail sales rose 1.2%. Sales at food services and drinking establishments also increased by 1.6%.

Receipts did not increase in all categories: electronics and appliance store sales fell 0.3%.

Also Read :  New incubator in Grand Rapids supports tech startups

The IS Federal Reserve He responded to the inflationary crisis with the most aggressive action in years as he stepped up to catch up with fleeing consumer prices.

Policymakers have approved four back-to-back 75-point interest rate hikes in June, July, September and November, and have signaled further big increases at upcoming meetings if inflation remains above to be tall.

VIEW FOX’S BUSINESS THROUGH BUSINESS HERE

Rising interest rates could force consumers to pull back on spending.

Source

Leave a Reply

Your email address will not be published.

Related Articles

Back to top button