US retail sales soar 1.7% as Americans kickstart holiday shopping, brighten outlook

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US retail sales soar 1.7% as Americans kickstart holiday shopping, brighten outlook

On Tuesday, US Commerce Department data had unveiled that US retail sales had shot up robustly in October, as more Americans appeared to have started off their holiday shopping much earlier-than-anticipated amid frets that a steep shortage of raw materials could lead to a cataclysmic scarcity of consumers’ goods, eventually handing out the US economy a solid start to an all-important fourth quarter shopping that includes Black Friday, Christmas and New Year.

On top of that, with US household wealth chartering at a record level following a series of Government stimulus, latest Commerce Department data on retail sales had underscored that sky-scrapping inflation indicators have had little or no impacts on consumers’ shopping behavior.

If truth is to be spoken, aside from a sharp increase in household wealth, wage hikes, massive savings alongside a muscled-up Wall Street which has been hovering close to a record peak, had helped consumers weathered a rapid upswing in inflation indicators.

US Consumer Price Index (CPI) had hit a 31-year peak in October, though consumer sentiment had plunged to a 10-year low earlier in November.

US retail sales surge in October

According to US Commerce Department data, US retail sales soared 1.7 per cent in October, marking off the strongest monthly gain in seven months while logging a third straight monthly advance.

In the latest flashpoint of a strong consumers’ demand, US retail sales climbed 16.3 per cent over past twelve months through October and currently stand at 21.4 per cent above their pre-pandemic levels. Meanwhile, addressing to a strong consumers’ appetite, a chief economist at PNC Financial in Pittsburg, Pennsylvania, Gus Faucher said, “It's more important to look at what consumers do than what they say.

They are concerned about higher inflation, but they are still in good shape and are continuing to spend”.