US retail sales rose 1.3% last month, a sign of resilience
Americans stepped up their spending at retailers, restaurants, and auto dealers last month, a sign of consumer resilience as the holiday shopping season begins amid painfully high inflation and rising interest rates
WASHINGTON (AP) — Americans stepped up their spending at retailers, restaurants, and auto dealers last month, a sign of consumer resilience as the holiday shopping season begins amid painfully high inflation and rising interest rates.
The government said Wednesday that retail sales rose 1.3% in October from September, up from a flat reading in September from August. The increase was led by car sales and higher gas prices. Still, excluding autos and gas, retail spending rose 0.9% last month.
Even adjusting for inflation, spending increased at a solid pace. Prices rose 0.4% in October from September. Economists pointed to two likely factors behind the gain: Amazon held another Prime Day promotion last month, and California distributed inflation relief checks of up to $1,050.
Steady job growth, rising wages, and higher savings after many people cut back on travel and entertainment during the pandemic have enabled surprisingly steady spending by consumers, particularly those with higher incomes.
