According to a Commerce Department report, consumer spending increased 1.2 percent in October from the previous month to $373.1 billion. This was the largest increase since March, and sales were up 7.3 percent from a year earlier during October.
“October’s U.S. retail sales are a fairly encouraging sign that consumption growth may be starting to gain some traction,” said economist Paul Dales of Capital Economics.
Sales related to automotive needs, building and gardening all went up, showing a commitment to thriftiness and car-buying. Stores selling furniture, electronics and appliances, and health and personal care items saw purchases fall, however.
Still, commodity prices are increasing, and that might limit spending because of the necessity of gas and food. “It still looks as though consumption will be unable to shift the economic recovery into a higher gear, said Dales.
Source: Money.CNN.com
