US Retail Sales Miss Expectations After Drop in Auto Sales

U.S. retail sales rose less than expected in October amid a surprise decline in automobile purchases, suggesting a slowdown in consumer spending that could temper expectations of a strong pickup in fourth-quarter economic growth.

The Commerce Department said on Friday retail sales edged up 0.1 percent last month after being unchanged in September.

Economists polled by Reuters had forecast retail sales increasing 0.3 percent in October after a previously reported 0.1 percent increase in September.

Sales at auto dealerships fell 0.5 percent last month after rising 1.4 percent in September. The decline is surprising given that motor vehicle manufacturers reported strong sales for October.

Retail sales excluding automobiles, gasoline, building materials and food services rose 0.2 percent after an upwardly revised 0.1 percent gain in September. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.

Via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza