Total retail sales increased 0.1 percent in October, compared to a 0.9 percent increase in September. NAFCU Vice President of Research and Chief Economist Curt Long analyzed the report in a new NAFCU Macro Data Flash report.
“Total retail sales decelerated for the first time since June and fell for the first time since March, dropping by 0.1 percent month-over-month,” said Long. “October sales returns were expected to be weak due to the sharp drop in gas prices, but the slowdown was evident across numerous sectors. Control group sales rose by 0.2 percent month-over-month in a sharp reversal from September’s spike. Broadly speaking, the decline in spending is tracking with slower growth in aggregate labor income as hiring, wage growth, and hours worked taper.”
Sales within the control group – which excludes the auto, gas, and building material categories and is the basis of the Commerce Department’s estimate of personal consumption expenditures – increased 0.2 percent in October.
Monthly growth in retail sales was mixed. Gains were led by health and personal care stores (+1.1 percent), food and beverage stores (+0.6 percent), and electronics stores (+0.6 percent). Losers included furniture stores (-2 percent) and auto dealers (-1.1 percent).
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