October retail sales fell less than Wall Street feared, reiterating that the American consumer remains in better shape than many economists have projected.
The 0.1% drop marked the first headline monthly decline in sales since March. Economists surveyed by Bloomberg had expected a 0.3% decline.
Sales excluding auto and gas increased 0.1%, below estimates for a 0.2% increase compiled by Bloomberg. Meanwhile, September’s sales were revised up to 0.9% from a previously reported 0.7% increase.
The October report, released by the Commerce Department, offers a snapshot of consumer spending at a time when economic data has begun to paint a picture of an economy that’s showing some signs of slowing growth while inflation continues to fall.
Seven of the 13 categories highlighted in the release saw decreases from a month ago while clothing was the lone category unchanged from August. Sales at furniture and home stores declined the most, falling by 2% in October while miscellaneous stores dropped 1.7% from the month prior. Motor vehicle and parts dealers also saw sales declines of 1%
The biggest gainers were health and personal care stores where sales gained 1.1%. Electronics & appliance stores saw a gain of 0.6%.
The report comes amid a busy week in retail as big box retailers report quarterly results. Thus far, both Home Depot (HD) and Target (TGT) have reported sales declines from the prior year, though their numbers haven’t dropped as far as Wall Street feared.
Josh Schafer is a reporter for Yahoo Finance.
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