U.S. retail sales increased more than expected in October, likely as Americans started their holiday shopping early to avoid empty shelves amid shortages of some goods because of the ongoing pandemic, giving the economy a lift at the start of the fourth quarter.
Retail sales surged 1.7% last month, the Commerce Department said on Tuesday. Data for September was revised higher to show retail sales rose 0.8% instead of 0.7% as previously reported. Sales have now risen for three straight months.
Economists had forecast retail sales advancing 1.4%.
Consumer prices soared 0.9% in October. Shortages could have led consumers to anticipate even higher prices and shop early.
“Strapped supply and retailers encouraging shoppers to start holiday shopping early suggest some spending was likely brought forward,” said Sam Bullard, a senior economist at Wells Fargo in Charlotte.
