U.S. retail and food services sales escalated last month to $638.2 billion, up 1.7% over the previous month and beating economists’ forecasts, according to a Tuesday (Nov. 16) report from the Census Bureau.
October marks the third month in a row retail that sales have increased.
Data for September was revised upward to 0.8 percent from a 0.7 percent increase. Sales were up 15.4 percent August through October over the same period in 2020.
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Retail trade sales were up 1.9% from September, and up 14.8% from the same time period last year. Gas stations saw sales numbers increase 46.8% from October 2020, in part due to higher gasoline prices.
Food services and drinking places were up 29.3% over last year. Car sales were up for the first time in six months, boosted by higher prices brought by tight inventory due to the worldwide semiconductor shortage.
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Economists polled by Reuters anticipated retail sales would increase 1.4%, whereas ING forecast 1.5%. Barclays chief U.S. economist Michael Gapen expected a 1.2% gain.
Gapen told CNBC that a solid number would a positive sign that the economy is moving back to where it should be.
With consumer prices up 0.9% in October, and supply chain snarls causing inventory shortages, consumers have started their holiday shopping earlier.
“Strapped supply and retailers encouraging shoppers to start holiday shopping early suggest some spending was likely brought forward,” Sam Bullard, a senior economist at Wells Fargo in Charlotte, North Carolina, told Reuters.
“Regardless, holiday sales are almost certainly going to set a record year-ago gain even as retailers face a unique set of challenges,” Bullard said.
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