Retail sales rose only 0.3% in Oct after downward revisions in Sep. That marks slowest pace since height of job losses in April. Vehicles rose slightly, despite a drop in unit sales. The pandemic has triggered demand for more expensive luxury, SUVs and pickup trucks.
City dwellers are looking for safer modes of transportation, while higher wage households needed larger vehicles to tow boats and RVs. Home bullders also need pick up trucks to transport building materials.
Only big positives in categories were online, electronics and building materials. Apple product introductions are a major mover for electronic sales. Gains at big box discounters couldn’t offset a drop at traditional department stores. Much of those sales were online.
Even spending at grocery store fell, which sadly helps explain the miles long lines at some food banks. Liquor store did better, as people stated to hunker down again. Or retail sales, which feed into GDP for the quarter, essentially flatlined.
We are expecting sales to contract in November and December as hospitalizations surge. This could also trigger more layoffs and permanent store closures. Congress wake up, compromise and get some aid out the door - yesterday.
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