CNBC/NRF reports US retail spending rose 0.2% in October

The CNBC/NRF Retail Monitor put October US retail spending at $561.7 billion, up 0.2% from September and 3.6% from a year earlier, after adjusting for regular seasonal patterns.^[1]

A separate spending measure in the report reached $454.2 billion, up 0.3% on the month and 3.4% on the year. CNBC also reported signs of financial strain among consumers even as they continued spending.^[1]

The modest spending increase supports retailers’ revenue and helps spread costs such as rent and staffing across more sales dollars. These figures measure dollars spent; higher prices can also lift that total, so they alone cannot establish how much sales volumes grew.^[1]

Household strain makes discounting an important variable for profits: if retailers need lower prices to attract customers, a smaller profit on each sale could offset the benefit of higher revenue.^[1]

Impact

• RetailersNeutral

  Continued spending provides revenue support, but retailers that increase discounts to sustain sales among strained consumers could sacrifice profit margins. The data do not establish which retail categories benefit most.^[1]

What to watch next

• The November 17 official US retail sales release for October will test the modest-growth reading; the current estimate is a 0.6% monthly increase.