Retail sales bounced back in October as shoppers geared up for the holidays. The National Retail Federation says sales jumped 5% compared with last year.
Digital products led the way with a 22% increase.
Clothing and sporting goods stores also saw strong gains. Clothing and accessories are up about 8% year over year. Sporting goods, hobby, music and book stores had an over 7% jump.
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The retail federation’s CEO says solid consumer spending is setting up positive momentum heading into the holiday shopping season. The group said it expects holiday sales will increase between 3.7% and 4.2%. This is despite a government shutdown that retailers are calling a "serious headwind."
“Retail sales grew in October as consumers geared up for the holiday season,” NRF President and CEO Matthew Shay said. “Recent economic data has been mixed, yet consumer spending remains solid — supported by wage growth outpacing inflation, historically low unemployment, and wealth effects from strong stock market valuations. These factors point to continued momentum heading into the holidays as consumers focus on family, friends and finding value to make their budgets go further.”
Some retailers did see a small drop, most notably furniture and home furnishings stores as well as building and garden supply stores.
