US retail sales rise strongly in October before holiday season

By Ovunc Kutlu

ANKARA (AA) - US retail sales showed a strong increase in October, before the beginning of the holiday season, according to figures released Tuesday by the Commerce Department.

Retail sales came in at $638.2 billion, up 1.7% from a revised $627.5 billion in September.

While the market expectation for October was a 1.2% increase, the figure in September was revised up from 0.7% to 0.8%.

The annual increase in October was 16.3%, compared to the same month in 2020.

"Gasoline stations were up 46.8% from October 2020, while food services and drinking places were up 29.3% from last year," the agency’s Census Bureau said in a statement.

They were followed by clothing and accessories stores and retailers with an annual increase of 25.8% each. Electronics and appliance stores rose 18.4%.

Retail sales are expected to remain strong during the holiday season through December, but persistent high inflation continues to be a major problem for the American economy.

Consumer price index (CPI) rose 6.2% in October, the largest 12-month increase since November 1990, according to the Labor Department last week. Core CPI jumped 4.6% year-on-year, its largest 12-month rise since August 1991.