U.S. Retail Sales Jump by Most Since March, Topping Forecasts

U.S. retail sales rose in October for a third month, signaling households continue to spend even with the fastest inflation in decades. 

The value of overall retail purchases increased 1.7% last month, the most in seven months, following an upwardly revised 0.8% advance in September, Commerce Department figures showed Tuesday. Excluding gas and motor vehicles, sales gained 1.4% in October. The figures aren’t adjusted for price changes.

The median estimate in a Bloomberg survey of economists called for a 1.4% advance in overall retail sales. The S&P 500 advanced while the 10-year Treasury yield was little changed.

The broad-based gain in spending highlights how elevated savings and rising wages have helped Americans sustain a robust pace of merchandise spending. Though total retail sales are well-above pre-pandemic levels, a recent inflation-driven collapse in consumer sentiment risks a future tempering in demand.