Retail sales drop in October

The Commerce Department noted a 0.1% drop in October retail sales yesterday, indicating that people have hit the brakes on spending for the first time since March this year.

But the drop is mostly because people spent less on gas; excluding gasoline and auto spending, sales climbed up 0.1% from September.

The report also said inflation came down to 3.2% last month, which is not so far from the Fed’s target of 2% annual inflation.

The cut-down
Americans cut down on retail spending in areas including furnishing stores (-2%), department stores (-1%) and auto shops (-1%).

They spent more at health stores (+1%) and on electronics and appliances (+0.6%), according to Axios.

The fall in retail sales signals a slowdown in consumer spending, which could help the country avoid a full-blown recession. Instead, experts predict, a soft landing is on the horizon.

But 
With the holidays, Black Friday and Cyber Monday sales just around the corner, a surge in shopping is sure to occur.

The National Retail Federation expects holiday season spending in 2023 (from November 1 through December 31) to grow 3% to 4% from the same period last year.