US retail sales: Solid strength in October - Wells Fargo

Today’s US retail sales report showed number above expectations. According to analysts from Wells Fargo, waving off recent election distractions and reflecting solid fundamentals, retail sales kicked off the current quarter on a solid note. 

Key Quotes: 

“On top of an upward revision to September and marking the largest back-to-back monthly gain since early 2014, retail sales increased 0.8 percent in October.”

“Of the 13 major categories, eleven increased for the second consecutive month. Notable gains were seen in autos, nonstore retailers, gas stations and building materials. Furniture and eating/drinking failed to rise on the month. 

“Control group sales, which feed directly into the personal consumption expenditures category of GDP, accelerated from recent softness, increasing 0.8 percent on the month. As uncertainty over the election outcome remains elevated, October’s retail sales performance provides some comfort that the primary driver of U.S. GDP growth remains on solid footing. Also, the runway to the holiday sales season remains positive.”