U.S. Retail Spending Growth Slows to 0.2% in October as Prices Rise

U.S. retail spending advanced 0.2% from September to a seasonally adjusted $561.7 billion in October, its smallest monthly increase since November 2025, as higher prices pressured shoppers.

October spending was 3.6% above the level a year earlier. A measure excluding restaurant spending rose 0.3% to $454.2 billion, up 3.4% year over year. Monthly growth slowed from September, though both measures remained higher than a year earlier.

Spending rose year over year in nine of 11 sectors. Electronics and appliances recorded the largest annual gain, increasing 9.3%. Furniture and home furnishings spending fell 0.2% in October and 2.6% year over year. A leisure basket that includes sporting goods, music and bookstores rose from September but declined 0.4% over 12 months.

Technology companies raised prices on products including MacBooks and Xboxes amid surging memory-chip costs tied to the artificial intelligence boom. Furniture and home furnishings sales weakened, likely reflecting a frozen housing market and rising mortgage rates.

Halloween demand and early holiday promotions helped support October spending. Matthew Shay, CEO of the National Retail Federation, said, “Households are managing budgets carefully, timing purchases around special offers and sales events in order to stretch their dollars.”

The consumer price index rose 0.4% in October. Consumer spending accounts for most U.S. economic output, making the slower monthly retail increase a sign of pressure on household demand even as spending stayed above its year-earlier level.