WASHINGTON (AP) — U.S. retail sales rose last month at a healthy pace in the latest sign that consumer spending is driving the economy's steady growth.
Retail purchases rose 0.4% from September to October, the Commerce Department said Friday, a solid increase though less than the previous month's robust 0.8% gain. Auto dealers, restaurants and electronics stores all reported higher sales.
Last month's rise in retail purchases suggests that the economy is growing briskly again in the current October-December quarter, after having expanded at a sturdy 2.8% annual rate in the previous quarter. Since peaking at 9.1% more than two years ago, inflation has sunk to near-optimal levels. And Americans' take-home pay, on average, has surpassed inflation for about 18 months.
Still, the post-pandemic inflation spike has left prices about 20% higher than they were three years ago and dimmed Americans' outlook on the economy. That was a key reason why Donald Trump was able to capitalize on public discontent with the Biden-Harris administration and recapture the White House in last week's election.
Yet despite high price levels, Trump will inherit an economy in which spending is strong, growth is solid and unemployment low.
Christopher Rugaber And Anne D'innocenzio, The Associated Press
