Retail sales in the US showed the first decline since March – Kommersant
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The US Department of Commerce published data on retail sales based on October results. They decreased compared to the previous month by 0.1%. This is the first decline since March. Compared to October 2022, sales increased by 2.5%.
Part of the decline may be due to the fact that October marked a pause between Americans’ relatively high spending in the summer, when retail sales rose steadily, and the upcoming holiday shopping and gift-buying season. According to some experts, the decline in retail sales, coupled with slowing inflation and less active hiring than before, indicates some slowdown in the economy as a whole.
“Slower economic growth, a decline in excess savings and subdued credit conditions will limit consumers’ willingness to spend,” said Nationwide senior economist Katie Boštjancic. According to forecasts from the US National Retail Federation, retail sales will grow by 3-4% during the holiday season compared to the same period last year, versus 5.4% in 2022 and 12.7% in 2021.
The results of one of the largest American retailers, Target, also indicate a decrease in buyer activity. He is today reportedthat its revenue in the third quarter decreased by 4.2%, to $25.4 billion, while net income increased by 36%, amounting to $971 million. Target also noted a decrease in the total number of transactions in the third quarter by 4.1%. According to the company’s CEO Christina Hennington, “Shoppers are feeling the pressure of various economic factors, and non-essential retail purchases are bearing the brunt of that pressure.”
Read about how the Fed assesses the state of the American economy in the Kommersant article. “Everything is possible”.
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