U.S. retail sales jump by most since March, topping forecasts

U.S. retail sales rose in October for a third month as higher prices boosted merchant receipts and household demand remained resilient.

U.S. retail sales rose in October for a third month as higher prices boosted merchant receipts and household demand remained resilient. 

The value of overall retail purchases increased 1.7 per cent last month, the most in seven months, following a upwardly revised 0.8 per cent advance in September, Commerce Department figures showed Tuesday. Excluding gas and motor vehicles, sales gained 1.4 per cent in October. The figures aren’t adjusted for price changes.

The median estimate in a Bloomberg survey of economists called for a 1.4 per cent advance in overall retail sales. Stock futures rose while the 10-year Treasury yield edged higher and the dollar was little changed.

The broad-based gain in spending highlights how elevated savings and rising wages have helped Americans sustain a robust pace of merchandise spending. Though total retail sales are well-above pre-pandemic levels, a recent inflation-driven collapse in consumer sentiment risks a future tempering in demand.

U.S. prices are rising at the fastest pace in 30 years as businesses pass on growing labor and input costs to customers, but it’s hard to tell just how much that’s impacting demand since the figures aren’t adjusted for inflation. Inflation-adjusted consumer spending data for October will be released next week.