U.S. Shoppers Boosted Spending Last Month, Taking on Higher Prices

American consumers spent more at the start of the holiday shopping season, brushing off concerns about higher prices at retailers last month.

Sales at U.S. retail stores, online sellers, and restaurants rose by a seasonally adjusted 1.7% in October compared with the previous month, the Commerce Department said. Consumers continued their stepped-up spending despite continued Covid-19 fears and inflation concerns.

Spending rose sharply, by 4%, at online retailers, along with big gains at electronics, appliance and hardware stores. Grocery-store sales rose by 1.1% while restaurant and bar sales were flat. Other gains occurred at...