• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Editor's Pick

US retail sales slightly above expectations in October

by November 15, 2024
written by November 15, 2024

WASHINGTON (Reuters) – U.S. retail sales increased slightly more than expected in October, but underlying momentum in consumer spending appeared to slow at the start of the fourth quarter.

Retail sales rose 0.4% last month after an upwardly revised 0.8% advance in September, the Commerce Department’s Census Bureau said on Friday.

Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, climbing 0.3% after a previously reported 0.4% gain in September. Estimates ranged from no change to an increase of 0.6%. Robust consumer spending helped the economy maintain its strong pace of growth last quarter.

Consumption is being largely underpinned by low layoffs, with additional help from strong household balance sheets thanks to a stock market rally and high home prices. Household savings also remain lofty.

Concerns have been raised that growth is mostly being driven by middle- and upper-income households, which have more flexibility and substitutability of consumption. But Bank of America card data shows spending resilient across income groups.

“We do not see signs of increased reliance on credit cards in any income cohort,” said Aditya Bhave, a U.S. economist at Bank of America Securities. “However, we note that higher-income households appear to be outperforming in certain service sectors such as airlines, lodging, entertainment and cruises.”

Retail sales excluding automobiles, gasoline, building materials and food services dipped 0.1% last month after an upwardly revised 1.2% gain in September. These so-called core retail sales, which correspond most closely with the consumer spending component of gross domestic product, were previously reported to have jumped 0.7% in September.

Consumer spending grew at a 3.7% annualized rate in the third quarter, accounting for most of the economy’s 2.8% pace of expansion during that period.

The Federal Reserve last week cut its benchmark overnight interest rate by 25 basis points to the 4.50%-4.75% range. 

Though the U.S. central bank is widely expected to deliver a third rate cut in December, some economists say that will be a close call citing lack of progress in lowering inflation back to its 2% target.

Fed Chair Jerome Powell said on Thursday that “the economy is not sending any signals that we need to be in a hurry to lower rates.” The central bank embarked on its policy easing cycle with an unusually large half-percentage-point rate cut in September, its first reduction in borrowing costs since 2020.

It hiked rates by 525 basis points in 2022 and 2023 to tame inflation. 

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
U.S. equity funds see robust inflows on corporate earnings optimism
next post
Barclays says prepare for a stock picker’s market

You may also like

China central bank conducts 1.7 trln yuan of...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

ECB president fears loss of central bank independence

January 27, 2025

European tech shares tumble as China’s AI push...

January 27, 2025

Futures slip as investors eye China’s latest AI...

January 27, 2025

Markets may be repeating the mistake of 2019,...

January 27, 2025

How billionaire Caltagirone could influence Italy’s banking M&A...

January 27, 2025

How Italy’s MPS went from near collapse to...

January 27, 2025

Analysis-To weather Trump, emerging market investors look to...

January 27, 2025

Chinese AI startup DeepSeek overtakes ChatGPT on Apple...

January 27, 2025
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!








    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Paramount acquires Bari Weiss’ The Free Press, naming her the top editor of CBS News

      October 7, 2025
    • YouTube to pay $24 million to settle Trump lawsuit

      October 1, 2025
    • Charlie Javice sentenced to 7 years in prison for fraudulent $175M sale of aid startup

      October 1, 2025
    • Video game maker Electronic Arts to be acquired for $52.5 billion

      October 1, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (650)
    • Stock (6,426)

    Latest News

    • Paramount acquires Bari Weiss’ The Free Press, naming her the top editor of CBS News
    • YouTube to pay $24 million to settle Trump lawsuit

    Popular News

    • US FDA revokes authorization for four COVID treatments
    • Fire at Tyson Foods poultry plant in Georgia kills one, company says

    About The Significant deals

    • About us
    • Contacts
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy