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US retail sales rise as consumers step up spending

Americans stepped up their spending at retailers, restaurants, and auto dealers last month, a sign...

👤 H K Badal16 Nov 2022 5:51 PM GMT
US retail sales rise as consumers step up spending


Customers are waiting for sales and buying smaller packages and trading down on their brands.


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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 (Nov 16) that retail sales rose 1.3 percent in October from September, up from a flat reading in September from August. The increase was led by car sales and higher petrol prices. Still, excluding cars and petrol, retail spending rose a solid 0.9 percent last month.

Strong car sales may have been supercharged by the arrival of Hurricane Ian in late September, which destroyed up to 70,000 vehicles, according to economists at TD Securities.

Even adjusting for inflation, spending increased at a solid pace. Prices rose 0.4 percent in October from September, much less than the overall sales figure. The government's solid report contrasted with gloomy figures on Wednesday from retail chain Target, which announced unexpectedly weak profits as its increasingly price-sensitive customers pulled back on spending.