Americans cut back on retail spending in October, the Associated Press reports, ending six straight months of gains, though the decline was partly driven by falling prices for both gasoline and cars.
Retail sales fell 0.1% last month after jumping a strong 0.9% in September, according to a report released by the Commerce Department today. September’s figure was revised higher from an initial 0.7% gain.
Excluding sales of autos, gas, building materials, and restaurant meals, the so-called “control group” of sales — which is used to calculate economic growth — rose 0.2%, after a 0.7% leap in September. The increase in control sales suggests consumers still have some spending power left.
Most retail categories reported a drop in sales, including gas stations and auto dealers, which partly reflected price declines last month in both categories. Sales at furniture stores fell 2%, and general merchandise sales — a category that includes large retailers such as Walmart and Target — dropped 0.2%. Sales at clothing stores were unchanged.
Online spending, however, climbed 0.2% last month, according to the report. Sales at electronics and appliance stores rose 0.6%, and grocery store sales moved up 0.7%. Restaurants and bars reported a 0.3% sales increase.
The figures aren’t adjusted for inflation, but the price of manufactured goods ticked down last month and overall inflation was flat.
