October retail sales have shown an American consumer who remains cautious and not at all certain about the strength of the economy or the availability of jobs.
Consumer spending in the United States barely registered an uptick in October, rising only an anemic 0.1 percent. In September, many economists and financial analysts were quite optimistic with regard to consumer spending. October’s numbers have brought thinks back into perspective as so many Americans continue to be wary of the economy and the availability of jobs.
It may also be that Americans are gearing up for the holiday season and are saving their pennies for holiday gifts and food, according to The Wall Street Journal. Sales at American restaurants and retail establishments were up 0.1 percent to a seasonally adjusted $447.3 billion in October. The Commerce Department reported that this mere rise has followed two months where retail sales have been flat at best. Economists had been predicting an increase in October retail sales of at least 0.3 percent.
Much of the anemic gain happened at online retailers who saw a 1.4 percent boost in their sales which kept the overall loss at a minimum. Americans also spent much of their money in October on furniture, health care products, gardening supplies and building supplies. Even though these areas saw some gain, it wasn’t enough as vehicle sales and auto parts sales plunged 0.5 percent and the gasoline stations reported that sales were extremely slow in October.
The health of the American economy is closely linked with consumer spending. Consumer spending accounts for nearly 70 percent of the economy’s output and is a true indicator of how well the economy is doing overall. Retail sales have been quite erratic for 2015. Some months Americans will spend a little and then the next month they are only spending on essentials like food and rent and other bills. Compared to last October, retail sales were up 1.7 percent.
Consumers ended up spending less in October due to lower energy costs and cheap gasoline. Gasoline sales fell in October 20.1 percent from a year ago. Aside from the above mentioned industries that showed gains in October, restaurants and bars continue to do well in any manner of economy. Sales were also down at supermarkets, electronics retailers, and liquor stores.
