US retail sales grew in October as retailers began offering deals and discounts, which kick-started a “mini-spending spree” among consumers.
Retail sales grew 0.4 per cent month-on-month in October, following an upwardly revised 0.8 per cent uplift in September, according to the Commerce Department’s Census Bureau.
On a year-over-year basis, retail sales grew 2.8 per cent in October, extending the upwardly revised 2 per cent rise in September.
According to GlobalData MD Neil Saunders, consumers were still delaying purchases in September and waited for deals and discounts to drop, and the growth in October showed that trend was in action.
“Much of this was fueled by a flurry of activity across traditional retail sectors as consumers kicked off the golden quarter with a mini-spending spree,” he said.
Halloween spending also provided a little boost to growth, which underlines the importance of events and occasions to stimulate consumers, the analyst added.
By sector, electronics & appliance stores saw the biggest month-on-month sales increase (2.3 per cent), followed by auto dealers (1.9 per cent), food services & drinking places (0.7 per cent) and building material & garden equipment (0.5 per cent).
Meanwhile, sales declined at miscellaneous store retailers (-1.6 per cent), furniture stores (-1.3 per cent), sporting goods, hobby, musical instrument & book stores (-1.1 per cent) and clothing (-0.2 per cent).
“Overall, October’s numbers will give retailers confidence that they are in for a reasonable holiday season.
“While there isn’t enough growth in the market to ensure that every player is a winner, there are solid gains to be made and those that have aligned themselves with consumer demand will find success,” Saunders said.
The election results will also have a “tiny net positive impact on spending”, he added.
