U.S. retail sales in October 2024 increased by 0.4% month-on-month, higher than market expectations

According to October retail sales released on the 15th one local time by the U.S. Department of Commerce, month-on-month sales rose 0.4%, better than expected. Nevertheless, the 0.4% month-on-month growth in U.S. retail sales for October is still widely viewed as solid, albeit more visibly subdued compared to September's 0.8% growth rate. 

Such reports prompt one to note that vehicle and part sales were up in October by 1.6%-month-on-month; electronic and home appliance sales were higher at 2.3%-month-on-month; sales of restaurants were higher at 0.7%-month-on-month; while sales in building materials increased by only 0.5%-month-on-month. 

It is motor vehicles and parts and electronic goods on the part of U.S. media looking at October sales growth, proving that consumer demand all the same remained at a moderately strong level in October, hence prompting numerous pedestrian economic commentaries, good news. Consumer spending is expected to hold strong this holiday season. 

Some economists believe that because the underlying inflation pressures inexplicably remain, this new and better-than-expected retail sales report should provide sufficient cover for the Fed to at least re-consider sitting on rates at the December meeting while more cuts would risk cases of inflation should demand begin to take off. "All presently available economic indicators give no signal that a rate cut is called for," states Powell on the 14th. 

The Federal Open Market Committee has spoken on November 17, 2024, announced a cut of a quarter of a basis point in its target range of the federal funds from September within 4.50%-4.75%. This is the second time this year that the Federal Reserve cut rates since September.