ARLINGTON, Va.—After two months of decline, retail sales rose 0.8% in October. Sales from August and September were revised downward to 0.1% declines.
"Rising gasoline prices drove up sales at the pump," said NAFCU Research Assistant Yun Cohen.
"Meanwhile, sales at building material stores were likely helped by rebuilding activities associated with Hurricanes Florence and Michael," Cohen added in a NAFCU Macro Data Flash report. "Consumer sentiment remains elevated in early November, which bodes well for the upcoming holiday shopping season. The positive outlook is also supported by strong employment and a pickup in wage growth."
Core retail sales (excluding light vehicles and gasoline) increased 0.3% in October; auto and gas sales improved 1.9% during the month.
Results among the major retail segments were mixed in October. Gas stations saw the largest gains during the month (+3.5%), followed by auto dealers (+1.1%), building material stores (+1%) and electronics stores (+0.7%). Sales at furniture stores and restaurants decreased 1.8% and 0.2%, respectively, Cohen said.
Looking ahead, Cohen said rising interest rates, trade tensions and tariffs could have negative impacts on retail sales.