Retail Sales in U.S. Increased More Than Forecast in October
By Victoria Stilwell - Nov 20, 2013 8:30 AM ET .
Retail sales in the U.S. rose more than forecast in October, a sign that consumer spending was resilient even during the government shutdown.
The 0.4 percent increase was the most in three months and followed no change in September, Commerce Department figures showed today in Washington. The median forecast of 86 economists surveyed by Bloomberg called for a 0.1 percent October advance. Sales excluding gasoline climbed 0.5 percent.
Fuel costs near their lowest levels in more than two years and household wealth boosted by rising stock and home prices may keep underpinning consumers’ ability to buy. The pickup boosts the outlook for retailers such as Macy’s Inc. heading into the holiday-shopping season.
Spending will be bolstered by “higher stock prices, higher house prices, lower gas prices and more people working this holiday season than last,” Stuart Hoffman, chief economist at PNC Financial Services Group Inc. in Pittsburgh, said before the report. “To me that adds up to better sales.”
Estimates in the Bloomberg survey ranged from a decline of 0.3 percent to a gain of 0.7 percent. The reading for September was revised from an initially reported 0.1 percent decrease.
Nine of 13 major merchant categories showed increases last month, led by the gains at auto dealers, department stores, clothing outlets and electronics establishments.
Sales at automobile dealers advanced 1.3 percent after falling 1.2 percent in September, today’s report showed.
Industry figures, which are the ones used to calculate economic growth, showed cars sold at a 15.15 million pace in October, down from 15.21 in September, according to data from Ward’s Automotive Group. While demand has cooled from an almost six-year high 16-million pace in August, automakers remain on track to have their best year since 2007.
more:
http://www.bloomberg.com/news/2013-11-20/retail-sales-in-u-s-increased-more-than-forecast-in-october.html
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