U.S. Retail Sales (October 2020): Sensing Some Fatigue

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BMO

  • Not exactly a “Monster” of a report, unlike the single that will be dropped this Friday, but it has been six months since the recovery began so some slowing is completely expected. U.S. retail sales rose 0.3% in October, below expected but still the sixth straight monthly gain and 5.7% above year-ago levels.
  • However, momentum has slowed. And October’s move was, frankly, disappointing. Many of the areas that benefitted from the reopening of the economy, the need for retail therapy, are seeing those benefits fizzle out somewhat. Purchases of new cars and SUVs continued to rise, albeit at a slower pace (+0.4%). Excluding autos, total sales edged up 0.2%, the slowest rise since April.
  • Overall, not an encouraging report but not a shock that consumers needed a breather after a lengthy streak of spending, and as savings and some UI benefits start to thin out a bit. This all goes back to the need for continued job growth and steady income gains to support consumer spending. The November report will be more telling about the mood of American consumers

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h/t  Altruistic_Camel

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