US retail sales flatline in October, but underlying trends positive

(Sharecast News) - Retail sales in the United States flatlined in October while the previous month's growth were revised down, according to the US Census Bureau on Tuesday. US retail and food services sales totalled $732.6bn, more or less unchanged from September, marking the first month of no growth since May when sales slumped.

While up 3.5% on October 2024, this was slightly below the 0.1% increase expected by analysts. In addition, September's figure was revised down to 0.1% from 0.2%.

Nevertheless, the closely followed, so-called Retail Sales Control Group data, which measures retail excluding the more volatile sales from auto dealers, building materials suppliers, gas stations, office supply stores, mobile home dealers and tobacco stores, increased by 0.8% after falling 0.1% the previous month. Sales at auto dealers in particular were down 1.6% over the month.

The Retail Sales Control Group data, which is seen as more indicative of underlying consumer spending trends, smashed the 0.3% consensus forecast.