U.S. Retail Sales Up Slightly More Than Expected

Partly reflecting a jump in sales by motor vehicle and parts dealers, the Commerce Department released a report on Friday showing retail sales in the U.S. increased by slightly more than expected in the month of October.

The Commerce Department said retail sales rose by 0.4 percent in October after growing by an upwardly revised 0.8 percent in September.

Economists had expected retail sales to climb by 0.3 percent compared to the 0.4 percent increase originally reported for the previous month.

Excluding the surge in sales by motor vehicle and parts dealers, retail sales inched up by 0.1 percent in October after jumping by 1.0 percent in September. Ex-auto sales were expected to rise by 0.3 percent.

The Labor Department also released a report on Friday showing an unexpected increase by import prices in the U.S. in the month of October.

The report said import prices rose by 0.3 percent in October after falling by 0.4 percent in September. Economists had expected import prices to edge down by 0.1 percent.

Meanwhile, the Labor Department said export prices climbed by 0.8 percent in October following a revised 0.6 percent decrease in September.

Export prices were expected to slip to 0.1 percent compared to the 0.7 percent decline originally reported for the previous month.

A separate report released by the Federal Reserve Bank of New York on Friday showed regional manufacturing activity has seen a substantial turnaround in the month of November.

The New York Fed said its general business conditions index skyrocketed to a positive 31.2 in November from a negative 11.9 in October, with a positive reading indicating growth. Economists had expected the index to jump to a negative 0.7.

With the much bigger than expected increase, the general business conditions index reached its highest level since December 2021.

Looking ahead, the New York Fed said firms remained optimistic that conditions would continue to improve in the months ahead.

At 9 am ET, Boston Federal Reserve President Susan Collins is due to give opening remarks before the Federal Reserve Bank of Boston 68th economic conference, “The Future of Finance: Implications of Innovation.”

The Federal Reserve is scheduled to release its report on industrial production in the month of October at 9:15 am ET. Industrial production is expected to dip by 0.3 percent in October, matching the decrease seen in September.

At 10 am ET, the Commerce Department is due to release its report on business inventories in the month of September. Business inventories are expected to rise by 0.2 percent in September after climbing by 0.3 percent in August.

The Federal Reserve Bank of New York is scheduled to release the text of opening remarks by President John Williams before a closed event, “New York Fed Alumni: Celebrating 100 Years of Making Our Mission Possible,” at 1:15 pm ET.


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