Economists polled by Reuters had forecast retail sales increasing 0.3 percent in October after a previously reported 0.1 percent increase in September. Healthy consumption has offset a strong dollar, global economic troubles and low oil prices, which have hurt manufacturing activity and business investment.
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Total sales for the August 2015 through October 2015 period were up 2.0% from the same period a year ago.
Sales at retail stores and restaurants rose just 0.1 per cent from the prior month to a seasonally adjusted $US447.3 billion in October, the Commerce Department said Friday, following two months of flat sales. “Households could be saving up for a holiday binge, making the next two retail sales reports of utmost importance when gauging the health of the consumer”.
Lower energy prices have held down the overall figure since the middle of previous year, as consumers spent less at gas stations thanks to lower gasoline prices. JC Penney is down 16 percent, Kohl’s was down 7.3 percent and Macy’s is off 4.2 percent. Economists had predicted a more robust 0.3% growth, according to FactSet, a financial data company.
U.S. retail deals climbed not exactly as expected in October as auto deals fell, stirring reasons for alarm that purchaser spending could hit monetary development in the final quarter.
Estimates for retail sales in the survey ranged from little change to a 0.8 per cent increase. Sales at general merchandise stores, which include warehouse big-box merchants that also sell gasoline, fell 0.4 percent.
The auto sector appears to remain solid even with the decline in sales documented by the government last month.
Fresh worries about weak United States consumer spending going into the crucial holiday sent USA shares tumbling for the third straight day on Friday. The possibility of the Federal Reserve’s first increase in the benchmark interest rate since 2006, in addition to the fluctuations in stock prices, could limit Americans’ enthusiasm for shopping sprees.
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In a separate report, the Labor Department said its producer price index fell 0.4 percent last month after dropping 0.5 percent in September.
