October Retail Sales Reach $732.6 Billion
Up 0.5% Month-on-Month Excluding Automobiles and Gasoline
U.S. retail sales in October remained flat, weighed down by sluggish auto and gasoline sales. Amid job insecurity, economic uncertainty, and persistent inflation, consumers have become more cautious about increasing their spending. While retail sales growth has stalled, it has not completely reversed, leading some to assess that consumer spending continues to serve as a pillar of the economy.
According to the U.S. Census Bureau under the Department of Commerce on December 16 (local time), retail sales in October 2025 reached 732.6 billion dollars, maintaining the same level as the previous month. The retail sales growth rate for September was revised downward from the previously reported 0.2% to 0.1%.
The October retail sales growth rate fell short of the market forecast (0.1%) compiled by Bloomberg News.
In contrast, retail sales excluding autos and gasoline rose 0.5% from the previous month, surpassing expectations (0.4%).
Core retail sales (the control group), which exclude highly volatile sectors, increased by 0.8% compared to the previous month, twice the market estimate (0.4%). This marks the largest increase in four months. Core retail sales exclude food services, autos, building materials, and gasoline stations, and are reflected in the calculation of gross domestic product (GDP).
By category, sales increased in 8 out of 13 sectors. Furniture and home improvement stores (2.3%), sporting goods and bookstores (1.9%), online retailers (1.8%), general merchandise stores (1.5%), and clothing and accessory stores (0.9%) all showed growth. In contrast, auto sales fell by 1.6% due to the expiration of federal electric vehicle subsidy tax credits, while gasoline station sales declined by 0.8%.
U.S. retail sales have maintained a recovery trend since June. After increasing by 1% in June, sales rose by 0.6% in both July and August, though the growth momentum weakened somewhat in September. Although retail sales growth slowed in October, analysts note that consumer spending continues to act as a buffer for the economy amid a combination of labor market slowdown and high inflation.
With the year-end shopping season approaching-including the Thanksgiving holiday and Black Friday at the end of November-retailers typically launch major discount events starting in October. In fact, consumer spending during the November Black Friday period remained robust, indicating that recovery momentum persists.
However, economists predict that consumer spending is likely to slow in the fourth quarter due to the impact of economic uncertainty, including job insecurity.
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