Overview
- Headline retail sales were unchanged in October, missing the 0.1% forecast, after September was revised down to a 0.1% gain.
- The control group that feeds into GDP rose 0.8%, with autos falling 1.6% and notable gains in online retailers and furniture stores.
- The release arrived late because of a 43-day federal government shutdown, with the first official estimate of third‑quarter GDP due next Tuesday.
- Bank of America Institute reported higher‑income households are sustaining discretionary outlays, while lower‑ and middle‑income consumers are pulling back.
- Americans face elevated costs for imported goods linked to President Donald Trump’s broad tariffs, and the Atlanta Fed’s prior estimate put Q3 growth at a 3.6% annualized pace.