Consumer spending bounced back in October, according to the latest Retail Monitor report from the National Retail Federation (NRF) and CNBC. This positive trend comes after a September slowdown caused by concerns about geopolitical tensions and disruptions like the port strike.
“Healthy spending resumed in October as consumers continued to benefit from this year’s job gains and higher wages,” NRF President and CEO Matthew Shay said. “Inflation is mostly limited to services at this point and prices for some retail goods are actually falling. October sales have set the stage for a good start to the holiday shopping season.”
Total retail sales (excluding autos and gas) increased 0.74% month-over-month and 4.13% year-over-year in October. This is a significant improvement compared to September, which saw a 0.32% monthly decline and a modest 0.55% yearly gain. Core retail sales (excluding restaurants, autos, and gas) also saw strong growth, rising 0.83% monthly and 4.59% annually. October’s year-over-year increase for both total and core sales is the highest since November 2023 and August 2023, respectively.
NRF believes this October surge sets the stage for a strong holiday shopping season. They point to factors like continued job growth and higher wages that are boosting consumer confidence.