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US consumer spending increased in October as people prepared for the holiday season.
Revenue improved 0.6% compared to the previous month, following a 0.7% drop in September, the National Retail Federation (NRF) said Monday. Year-on-year retail sales remained robust, rising 5% in October, the federation added.
For the second consecutive month, the Census Bureau did not release its retail data, due to the US government shutdown.
“Retail sales grew in October as consumers geared up for the holiday season,” said NRF CEO Matthew Shay. “Recent economic data has been mixed, yet consumer spending remains solid — supported by wage growth outpacing inflation, historically low unemployment, and wealth effects from strong stock market valuations.”
Sales climbed year on year in October in seven of the nine categories the NRF monitors. The clothing and accessories segment — which encompasses jewelry — rose 8% year on year and went up 1.4% compared to the previous month. The furniture and home furnishings division was down 1.7% year on year, while building and garden supply stores saw a 9% year-on-year drop and slipped 0.8% month on month.
Meanwhile, data provider Adobe reported an 8% year-on-year increase in online sales to $88.7 billion in October. Revenue advanced during the October 7 and 8 Prime Day event, with consumers spending $9.1 billion online, a 7% year-on-year gain, according to Adobe. In the same month, holiday-decor sales spiked 130%. Furthermore, “Buy Now Pay Later” purchases totaled $7.1 billion, a jump of 8% compared to last year, as consumers preferred greater flexibility in managing their budgets.
Image: Grocery-store shoppers in Salt Lake City. (Shutterstock)
