U.S. retail sales came out for October this morn. We got a beat. Remember that retail sales make up 1/3rd of consumer spending.
Retail sales climbed by a seasonally adjusted +0.4% last month or by +0.2% if you exclude motor vehicles. September retail sales got revised up from a -0.1% decline to unchanged too.
Consensus expected flat seasonally adjusted retail sales in October, with a +0.2% increase in sales minus motor vehicles. By the way, there is also a fat (+/-0.5%) margin of error.
Ignoring the Federal shutdown, U.S. consumers jumped on new car deals and spent money on clothes, electronics and their hobbies. Auto sales jumped +1.3%. Sales of clothing rose +1.4%. Purchases of books, sporting goods and other hobby items advanced +1.6%.
Over the last 12 months, retail sales tacked on +3.9% growth. Going back 30 years, the annual average is +6.3%.
A few interesting facts:
- Auto dealers up +11.9% from a year ago.
- Non-store retailers up +8.2%.
- Furniture store sales up +7.7%.
My RTI question: Are big-ticket consumers actually saving for bigger purchases now? Or are they selling stocks and taking out loans?
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