October retail sales began rebounding from the lowest point of the year with a 1.4 percent increase fueled largely by the auto industry. Sales dropped 2.3 percent in September, exceeding a predicted decline of only 1.5 percent.
Auto demand is steadying after plummeting to its lowest point in 30 years earlier this year. GM and Ford experienced the first sales gains in three years with annual rates gaining 1.3 million to reach 10.5 million. Sales at dealerships and parts stores climbed 7.4 percent after losing 14 percent in September.
Purchases, excluding vehicle sales continued to disappoint. Still, amplified demand at discount and luxury stores alike may signify a recovery during the holidays. As of now, it’s difficult to determine what the coming months will bring in the face of an ailing labor market.
Sales at discount destinations like T.J. Maxx and Marshalls climbed as did luxury retailers Saks and Nordstrom Inc., marking retails largest increase in comparable store sales since July of ‘08.
JP Morgan has predicted a sales increase of 1.3 percent, a relatively optimistic projection considering the state of the labor market. A upturn in consumer spending, which makes up over 70 percent of the economy, is crucial to the recovery.
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