The amounts: In October, store sales went up a lot, which showed that the economy is still going strong as we head into the holiday shopping season.
The government said Friday that sales went up 0.4% last month and that September receipts were twice as high as they had been thought.
About one-third of all customer spending goes to stores, so they can tell you a lot about how strong the economy is.
According to a study by the Wall Street Journal, economists thought the rate would go up by 0.3% last month.
Important facts: In October, sales of new cars and trucks rose 1.6%, which was the biggest jump among sellers. One fifth of all store sales are cars.
If cars are taken out of the picture, store sales only went up 0.1%.
It’s a good sign for the economy that restaurant sales went up a sharp 0.7% in October.
When the economy is good and people are confident in their work, restaurant sales tend to go up. These signs point to a healthy economy right now.
Last month’s overall sales rise was helped by sales at online shops, big-box stores, and home centers.
Overall, the U.S. has grown faster than expected since spring. This is mostly due to strong consumer spending, which is what keeps the economy going.
Some of the spending is due to higher inflation, but Americans can afford to spend more because they have steady jobs and not too much debt.
But the economy has been fairly strong, which could mean that the Federal Reserve has to cut interest rates more slowly. This will be bad for people who want to buy a house or a car but are waiting for prices to go down.
In the future: He said, “The economy is pretty much in good shape and will probably keep growing steadily through 2025.” Adams is the top economist at Comerica in Dallas.
