US Retail Sales Up 1.7% Despite Americans' Pessimism About Rising Inflation
Americans may be concerned about rising prices, but that has not stopped them from continuing to do their holiday shopping this year.
On Tuesday, the U.S Census Bureau released its latest retail sales report which found that sales at retailers, online and offline, were up by a seasonally adjusted 1.7% in October compared to September. This number eclipses the same period last year, surpassing it by 16.3% overall.
Shopping for food at grocers and restaurants only saw marginal gains. Spending at grocery stores increased 1.1% from September whereas spending at restaurants saw no change in the last month. Clothing and personal care shopping were the only categories of goods that posted declines while still staying above the same levels last year.
Online shopping grew the most at 4% followed by spending on gasoline and building materials, growing at 3.9% and 2.8%, respectively.
The boost in retail sales comes at a time when Americans are feeling their most pessimistic in a decade, largely because of rising inflation. Last week, the University of Michigan’s Consumer Sentiment Index found that consumers were feeling their most pessimistic since 2011 during the recovery from the Great Recession.
The latest Consumer Price Index and Producer Price Index measurements from the Department of Labor showed goods becoming more expensive, including core goods like food and energy.
Last month, President Joe Biden pledged to make reducing ongoing supply chain bottlenecks and cutting down a shipping backlog a priority. He has announced partnerships with private companies to keep U.S. ports operational 24/7 and get goods to market.
The Federal Reserve has cut back on its multibillion-dollar monthly asset purchases. Starting this month, the central bank will begin gradually reducing its purchases by an additional $15 billion every month.
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