Growth of 1.3% in US Retail Sales Dampens Fears Due to Record InflationSteady job growth, higher savings and higher wages drive retail growth at the start of holiday season and suggest resilience of American consumers.
By Main Street Sentinel Staff
October saw a 1.3% increase in retail sales as consumer spending significantly outpaced price increases due to inflation,the AP reported. While retail prices increased by .4% nationally, the increase in sales greatly outpaced this price hike, demonstrating significant resilience amongst American consumers.
Economists explained that job growth, higher wages, and increased savings, as American’s pared back on travel and vacation expenses, all contributed to this capacity to outpace inflation.
Gas and car sales accounted for the biggest growth in sales in the last month, though economists said that another Amazon Prime day and the recent distribution of relief checks to Californians likely contributed as well.
Despite these encouraging signs, indicating that the American economy is doing better than expected, some research showed that this ability to keep up with inflation may be fading as Americans turn to credit cards to pay off bills and turn towards cheaper foods and consumer items. This has led to poor sales performance at big chains like Target, which saw a 52% drop in profits.
Meanwhile inflation has increased 7.7% from a year ago, which, while down from its peak in June, is still a record high for the last 40 years. Experts see some relief in the future as supply chain problems are resolved.