NEW YORK (AP) — Sales at U.S. retailers and restaurants were unchanged in October from September as consumers moderated their spending amid worries about higher prices and other economic uncertainties after splurging over the summer.
Excluding sales at motor vehicle and auto parts outlets, sales rose 0.4, the Commerce Department said Tuesday in a report delayed more than a month because of the 43-day government shutdown.
The flat spending in October followed a revised 0.1% increase in September, according to the Commerce Department.
Sales jumped 0.6% in July and August and 1% in June. The federal government is gradually catching up on economic reports that were postponed by the shutdown.
The retail sales figures, which aren’t adjusted for inflation, suggest that Americans pulled back on spending in October as many households struggled with high prices for groceries, rent, and many imported goods hit by tariffs.
The latest job report, released by the Labor Department Tuesday, also shows a souring employment picture.
The retail sales report covers about one-third of consumer spending, with the rest going to services such as travel, haircuts, and entertainment.
Sales at clothing and accessories stores rose 0.9%, while business at furniture and home furnishing stores increased 2.3%, likely due to rising prices because of tariff costs. Most furniture is made in China.
Online retailers posted a 1.8% sales increase, while department stores saw business rise 4.9%.
And business at restaurants, the lone services component within the Census Bureau report and a barometer of discretionary spending, saw a 0.4% sales dip.
The report comes as retailers are getting ready for the crowds of last-minute shoppers for the last stretch of holiday shopping before Dec. 25 at a time of economic uncertainty.
Hiring has generally been weak, while the unemployment rate has ticked higher, which could hurt consumer spending and the broader economy. The latest job report showed that the United States gained a decent 64,000 jobs in November but lost 105,000 in October as federal workers departed after cutbacks by the Trump administration, the government said in delayed reports.
The unemployment rate rose to 4.6%, the highest since 2021.
Despite lots of uncertainty, holiday shopping season had a solid start, with shoppers focusing on deals, according to data over the Black Friday weekend.
The National Retail Federation, the nation’s largest trade group, still expects holiday sales to increase 3.7% to 4.2%, compared with last year. The period covers November and December.
Retailers rung up $976 billion in holiday sales last year, or a 4.3% increase from the prior year, the group said.
But spending trends by income continue to show a K-shaped pattern, with higher-income Americans thriving with their salaries and wealth rising, while the bottom part points to lower-income households struggling with weaker income gains and steep prices.
Based on spending from its credit card and bank customers, Bank of America found that high-income shoppers increased spending by 2.6% in November compared with the year-ago period, while lower-income groups lagged behind with a gain of just 0.6% compared with a year ago.
