U.S. October retail sales stagnate as auto and gasoline sales decline

Excluding autos and gasoline, up 0.5%

Electronics, furniture stores, department stores, etc.: consumption led by wealthy households

U.S. retail sales in October were unchanged from the previous month, neither rising nor falling. They underperformed market expectations, which had forecast a 0.1% increase.

On the 16th (local time), the U.S. Department of Commerce said the October retail sales report, delayed by the government shutdown, showed no change as weak auto sales and lower gasoline sales offset increases in other sectors.

Retail sales excluding auto sales and gas stations rose 0.5%. The 'control group' measure, the benchmark figure reflected in GDP data, rose 0.8% in October.

Sales increased in 8 of the 13 retail categories, with strong growth in department stores and online retailers standing out. Auto sales fell 1.6% due to the removal of the federal tax credit for electric vehicles. Also, gas station sales declined as gasoline prices fell.

The so-called 'control group' sales included in the government's GDP goods consumption calculation rose 0.8% in October, marking the largest increase in four months. This measure excludes restaurants, auto dealers, building materials stores, and gas stations.

Sales at electronics and appliance stores, furniture stores, and sporting goods stores increased. Sales at restaurants and bars, the only service sector in the retail report, fell 0.4%.

According to the statistics, many consumers are being cautious with spending and seeking discounted goods amid job insecurity and high living costs. Recent consumption growth has been driven mainly by wealthy households.

Kim Jeong-ah, contributing reporter kja@hankyung.com