US Core Retail Sales Higher, MoM Drop

by on October 29, 2013 3:09 pm BST

Retail sales in the United States fall MoM (month-over-month) to negative .1 percent and was a drop from the previous month of .3 percent. Estimates believed there would be a .2 percent increase. Core retail sales, including autos, increased .4 percent and were higher than August’s reading.

Data indicated that Americans did purchases electronics, like cell-phones and video games. Retail outlets could have seen demand as two large releases factor into the figures. Apple released two versions of their colored iPhone, and Take-Two Interactive Inc. released Grand Theft Auto V. Both releases were big with Apple selling more than nine million iPhones in the weekend debt.”Consumers continue to hold in despite all the uncertainty going into the shutdown,” said Millan Mulraine, TD Securities USA LLC. Mulraine correctly projected the sales excluding autos but is uncertain whether the effects of the government shutdown will hit consumer sentiment hear on out.

Although, some retailers worry about holiday spending and expect an increase in online sales. United Postal Service (UPS) expected demand to increase as the holiday shopping season comes around. UPS, the world’s largest package delivery company, expect volumes to rise eight percent during the key Thanksgiving to Christmas period and led by online shopping.

Food retail and restaurants led the pack with a .9 percent increase in sales with electronics a close second at .7 percent. Nine of the 13 categories show positive growth.

Clothing stores show the least amount of demand as sales slipped .5 percent. Auto sales at dealerships dropped 2.2 percent following a .7 percent increase the previous month.