Washington (Reuters) – US retailers reported a slight decline in sales in October.
Their revenue fell by 0.1 percent compared to the previous month, as the US Department of Commerce announced on Wednesday. Experts surveyed by the Reuters news agency had expected a decline of 0.3 percent, after an upwardly revised plus 0.9 percent in September.
“The October figures for sales development are a positive surprise, despite the slight minus,” says Helaba expert Ralf Runde, who speaks of a “breather”. The solid labor market is likely to continue to provide support despite the subdued mood and high interest rates. There is also relief on the inflation front. “Today’s numbers put the Fed’s recently increased interest rate cut expectations to the test again.”
The inflation rate fell noticeably in October to 3.2 percent. The probability of a further interest rate increase was then assessed as relatively low on the futures markets. At the same time, there was speculation about interest rate cuts from May 2024. For the US Federal Reserve, consumer prices are an important benchmark when setting its course. It has raised interest rates from near zero to a range of 5.25 to 5.50 percent since the beginning of 2022 to curb high inflation.
(Report from the Washington office, written by Nette Nöstlinger, edited by Reinhard Becker. If you have any questions, please contact our editorial team at [email protected])