The U.S. economy witnessed a significant cooling in core retail sales growth in October 2024, with the indicator decelerating sharply to a mere 0.1%, as per the latest data updated on November 15, 2024. This is a stark decline compared to September's robust growth of 1.0%, indicating a slowdown in consumer spending.
Core retail sales, which exclude automobiles, gasoline, building materials, and food services, serve as a key measure of consumer demand. The latest figures present a month-over-month comparison, showing that the October data represents a much softer expansion relative to the previous month. September's 1.0% growth had marked a strong recovery compared to August, but October's figures suggest a tapering in consumer enthusiasm as the holidays approach.
These findings are likely to raise concerns among policymakers and analysts who are closely monitoring the health of the U.S. economy amid broader concerns of inflation and interest rate adjustments. With the holiday shopping season just around the corner, retailers and economists will be watching closely to see if this softening trend continues or rebounds in the coming months.
