Retail sales rose broadly in October driven by strong performance at electronics stores and online, suggesting the economy sustained its momentum after consumer spending rose at the fastest pace in nearly a year during the third quarter.
The U.S. Department of Commerce reported that Advance Estimates of U.S. Retail and Food Services sales for October increased 0.5% over the prior month to $397.7 Billion, while sales increased 6.7% (unadjusted) compared to the year-ago period.
Year-over-year, this was the 24th straight gain after 15 consecutive months of declines. Results surpassed analyst estimates for a 0.3% gain and followed a 1.1% rise in September.
Total sales excluding Autos were up 6.7% in October from the year-ago period and up 0.6% from the prior month, while total sales less Autos and Gas Stations showed a 5.4% year-on-year increase and a 0.7% month-on-month gain. Both showed month-over-month increases that were the strongest since March.
For the month, 9 of 13 categories saw growth over September: the strongest gainers included Electronic Stores (+3.7% YoY / 3.5% MoM), Nonstore Retailers (+10.5% YoY / +1.5% MoM), Building Material Dealers (+6.3% YoY / +1.5% MoM), Sporting Goods Retailers (+7.0% YoY / +1.3% MoM) and Food & Beverage Stores (+5.5% YoY / +1.1% MoM).
Click here to see detailed results by line of business.
Department Stores (-0.7% YoY / -1.2% MoM) continue to lag as they are the only sector down year-to-date (-0.8%), and Q3 results from names like JC Penney suggest the space could have a tough Holiday season on increased competition from online retailers and discounters.
Macy's posted a strong 3rd quarter and e-commerce sales have surged 39.4% so far this year, but merchandise margins slipped as it was forced to match free shipping offers from rivals. comScore estimates that online spending rose 13% in the third quarter to $36.3 Billion (the Dept.