United States: Retail sales growth rebounds in October
November 14, 2014
In October, growth in retail sales increased 0.3% over the previous month, in nominal terms. The print contrasted the 0.3% decline recorded in September and slightly overshot market expectations of a 0.2% increase. The result was driven by higher sales in most categories, including sporting goods and music stores, restaurants, and health and personal care retailers. Consumers are benefitting from increased purchasing power amid a steady decline in gas prices.
Retail sales excluding cars and gas—a closely watched subcategory of the retail trade index—increased 0.6% in October over the previous month. The reading was up from the 0.1% expansion recorded in September and beat market expectations of a 0.5% increase.
Retail sales rose 4.1% in annual terms in October, which followed the 4.4% increase recorded in September. Moreover, the annual trend increased, with annual average growth in retail sales ticking up from 3.8% in September to 3.9% in October.
Author: Carl Kelly, Economist