US: Retail sales jump 1.7% in October – Exceeded expectations

Retail sales in the United States rose the most in seven months in October, beating analysts’ estimates and rising for the third month in a row, another strong indication that the US economy is recovering.

Americans appear to have started their holiday shopping early to avoid any “surprises” from shelf shortages amid continuing supply chain problems due to the pandemic, giving the economy a good boost early in the fourth quarter.

In particular, retail sales increased by 1.7% last month, according to data released by the US Department of Commerce. This is the largest increase since March, when the government injected billions of dollars into households for support amid the problems caused by the coronavirus pandemic.

Economists in a Wall Street Journal poll expected a significant increase but lower than the one announced, as they set the bar at 1.5%.

Meanwhile, the data for the retail sales of September were revised upwards, which according to the latest data increased by 0.8% compared to 0.7% as announced.

It is noted that retail sales are an important driver of growth and provide a good picture of the dynamics of the US economy.

Excluding car sales, retail sales rose 1.4% in October. Vehicle sales have risen for the first time in six months, amid declining supply caused by a shortage of semiconductors, which has led to rising vehicle prices and a positive contribution to rising retail sales. Additional impetus was provided by higher gasoline prices.

Excluding cars, gasoline, building materials and food services, retail sales rose 1.6%, up from 0.5% in September.