U.S. Retail Sales Rebound Ahead of Holiday Season

U.S. Retail Sales Rebound Ahead of Holiday Season

U.S. retail sales bounced back in October, rising 0.6% from the previous month and 5% year-over-year, signaling renewed consumer momentum ahead of the critical holiday shopping season, according to the latest monthly report from the National Retail Federation (NRF) and CNBC. The rebound follows a mild dip in September.

“Recent economic data has been mixed, yet consumer spending remains solid—supported by wage growth outpacing inflation, historically low unemployment, and wealth effects from strong stock market valuations,” said Matthew Shay, NRF president and CEO, in a statement Monday.

The report—based on anonymized credit and debit card data compiled by Affinity Solutions—excludes auto and gasoline purchases. Sales rose in seven of nine tracked categories on both a monthly and annual basis, led by gains in digital products such as video games and e-books, as well as clothing and sporting goods.

The NRF last week forecast that 2025 U.S. holiday retail sales will grow 3.7% to 4.2% compared with 2024, topping $1 trillion for the first time. The outlook underscores continued consumer resilience even amid higher interest rates and uneven economic indicators.