October US retail sales beat expectations

US retail sales grew at a quicker than expected pace last month, driven by an early start to holiday shopping.

The value of overall retail purchases increased 1.7% month-on-month to $638.2bn in October, following an upwardly revised 0.8% increase in September for the sharpest increase seen in seven months, according to the Commerce Department.

Excluding gas and motor vehicles, sales jumped 1.4% last month.

Total sales for the August through October period were up 15.4% when compared to the same period a year ago.

Oxford Economics' Gregory Draco said: "Consumers felt more at ease spending in October as retail sales registered a stronger-than-expected 1.7% advance. An improving Covid situation, easing supply constraints in the auto sector and an early start to holiday shopping all boosted purchases last month.

"Households were still willing to open their wallets in the face of higher prices – which inflated nominal sales figures – but there is increasing evidence that higher inflation is eroding purchasing power."