ARLINGTON, Va.—Total retail sales grew 1.7% in October, following September's 0.8% rise.
"Retail sales growth beat analyst expectations in October and nearly doubled the rate of inflation during the month," said NAFCU Chief Economist and Vice President of Research Curt Long. “Having said that, sales in many retail categories were stagnant or fell in the month in real terms (retail sales figures are not adjusted for inflation). At some point, the larger rotation out of goods spending and into services spending will manifest as softening in retail sales, but that transition has only been a modest one thus far. With more labor market gains in store and sturdy household balance sheets, consumer spending is poised to continue above trend growth for at least another 12 months."
Year-over-year growth in retail sales was up 16% during the month, up from +14.2% in September. Control group sales – which excludes auto, gas, and building material categories – were up 15.3% from a year ago.
Growth by Other Categories
Most sectors showed sales growth during the month, at least in nominal terms. Nonstore retailers (mostly online) advanced 4%, followed by gas stations (+3.9%) and electronics and appliance stores (+3.8%). Apparel stores lost 0.7% of sales in October, and health and personal care store sales declined by 0.6%, Long said.