News

Consumer spend slowdown ahead? October sales indicate it may be coming

Yet reports indicate consumers are confident and have more disposable income so November could be a much different scenario compared to October.

November 17, 2015

Not only is the warm weather playing havoc for retailers gearing up for the holiday shopping season but October's less than spectacular sales figures may indicate a consumer slowdown that could drive down fourth-quarter growth.

Retail sales crept up just 0.1 percent in October, according to Commerce Department figures, and while it represents some movement it isn't what industry watchers were expecting — 0.3 percent, according to a Reuters report.

Despite recent studies that indicate this year's holiday shoppers appear to be going for the big expensive purchase, from home appliance to car buying, auto dealerships saw a 0.5 percent dip in October after a jump of 1.4 percent in September and Reutersstated economists point to heavy sales discounts as the main culprit.

Yet most industry watchers remain optimistic this month's sales figures will be more robust given the continued price drop in gasoline, consumer confidence growing and an increasing disposable income level.