Retail sales unchanged in October, hurt in part by a decline in auto sales
NEW YORK (AP) — Sales at U.S. retailers and restaurants were unchanged in October from September as consumers moderated their spending amid worries about higher prices and other economic uncertainties after splurging over the summer.
But a big factor dragging down the figure was a 1.6% drop in sales at motor vehicles and auto parts dealerships, hurt by the expiration of federal government subsidies that sliced demand for battery-powered electric cars. Excluding that category, retail sales rose 0.4%, the Commerce Department said Tuesday in a report delayed more than a month because of the 43-day government shutdown.
The overall flat spending in October was less than economists expected and followed a revised 0.1% increase in September, the agency said. Retail sales jumped 0.6% in July and August and 1% in June.
The federal government is gradually catching up on economic reports that were postponed by the shutdown.
“The retail sales report for October was a dud, but the underlying details offer more encouraging signals for (fourth quarter) consumer spending and an elevated starting point for the critical two-month stretch for holiday sales,” Tim Quinlan, an economist at Wells Fargo, wrote Tuesday.
Still, Quinlan said other data suggest some slowdown through mid-December and leave the firm cautious on how the consumer crosses the finish line.
The government retail sales figures, which aren’t adjusted for inflation, show that Americans remained selective in October as many households struggled with high prices for groceries, rent and many imported goods hit by tariffs.
The latest job report, released by the Labor Department Tuesday, also shows a souring employment picture.
The retail sales report covers about one-third of consumer spending, with the rest going to services such as travel, haircuts and entertainment.
Despite lots of uncertainty, holiday shopping season had a solid start, with shoppers focusing on deals, according to data over the Black Friday weekend. But spending hasn’t been even across the board.
