- Spending at US retailers and restaurants rose 1.7% in October to $638 billion, the Census Bureau said.
- That exceeded the median forecast for a 1.1% jump and placed sales at a record high.
- The jump came as the Delta wave eased further and the hiring recovery accelerated.
Americans spent more than expected at retailers and restaurants in October as the Delta wave steadily eased and the economic recovery picked up speed.
Retail sales rose 1.7% last month to a new record high of $638.2 billion, the Census Bureau announced Tuesday. That beat the median forecast for a 1.1% jump from economists surveyed by Bloomberg. It also shows consumer spending picking up from September's pace.
The prior month's count was revised to $628 billion from $625 billion.
Nonstore retailers — which include e-commerce websites like Amazon — saw the largest increase with sales jumping 4% through October. Clothing and health and personal care businesses were the only sectors to see spending drop last month, but the two groups' declines both came in below 1%.
The print gives another encouraging sign of the US's rebound. Consumer spending counts for roughly 70% of economic activity, and it's been crucial for reviving the economy after lockdowns and lingering virus fears. Recent months have shown retail sales holding above the pre-pandemic trend as Americans deployed stimulus-boosted savings. Yet inflation reached its fastest rate since 1990 in October, raising concerns that the spending spree could soon cave to surging prices. Well, not yet.
Still, the spending environment is improving. Virus cases remain stubbornly high but haven't rebounded to their October highs yet. The widespread push for booster shots also stands to lift immunity and allow the economy to continue reopening.
Other economic data points to an increasingly resilient recovery. The October jobs report showed the US adding 531,000 new payrolls last month, beating the forecast for a 450,000-job gain and reflecting a strong pickup from September's growth. The unemployment rate fell to 4.6% from 4.8%, also exceeding estimates and bringing the labor market even closer to its pre-pandemic health.
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