2023-11-15 13:57:47
U.S. retail sales in October did not fall as much as market expectations, and the figures for September were revised upward. The US retail industry is heading into an important year-end sales season.
Key Points U.S. retail sales down 0.1% month-on-month, market forecast down 0.3%, up 0.9% last month (preliminary 0.7% increase), revised upward Data does not include inflation adjustment
Retail sales excluding automobiles and gasoline increased by 0.1%.
Core sales, which exclude restaurants, car dealers, building materials stores and gas stations, which are used to calculate gross domestic product (GDP), rose 0.2%. It suggested that the October-December (fourth quarter) period was off to a good start.
Seven of the 13 items were negative, with the most notable decreases being in furniture and car dealers. Sales of gasoline, which had fallen significantly in price, did not fall as much as feared. On the other hand, sales for personal care and grocery stores increased.
Personal consumption, the main engine of the economy, has shown unexpected resilience, leading economists to reconsider their forecasts for a recession. But it’s unclear how long that resilience will last, given the slowing job market, persistent inflation and rising borrowing costs.
“While consumers continue to face hurdles such as rising borrowing costs, tighter credit requirements and persistently high prices, the labor market is “However, with incomes on the rise and price pressures beginning to ease, consumption and growth should remain strong for some time.”
Restaurants, the only service item included in retail sales statistics, increased by 0.3%. Grocery stores grew 0.7%.
The U.S. consumer price index (CPI) for October released this week showed slower growth and an unexpected decline in the producer price index (PPI), giving another impression that inflationary pressures in the economy as a whole are receding. Ta.
Furthermore, prices for core goods excluding food and energy fell for the fifth straight month in October. Therefore, the decline in retail sales not adjusted for inflation may reflect a decline in prices rather than a decline in the number of transactions.
Looking ahead, higher credit card interest rates, lower savings, and the resumption of student loan repayments might all dampen spending during the holiday season. The National Retail Federation (NRF) expects these headwinds and other factors to be a drag. Major retailers such as home improvement retailer Home Depot and sports brand Under Armor have already warned of weak demand.
See table for detailed statistics.
Original title:US Retail Sales Slow Ahead of Holidays, But Remain Resilient(excerpt)
(Updated with addition of paragraph 7 onwards)
1700071819
#U.S #retail #sales #October #decline #market #expectations #previous #months #figure #revised #Bloomberg
