US retail sales were flat in October. The data surprised markets that had expected a small increase, based on official data. However, overall consumer spending still showed resilience in the early part of the fourth quarter.
The flat reading came amid rising cost of living pressures, particularly from higher prices for imported goods, healthcare and housing, driven in part by new import tariffs.
Economists say low- and middle-income households are being hit hardest, while higher-income groups continue to support unnecessary spending growth, resulting in a widening economic gap.
The latest data showed core retail sales rose strongly in October, a sign that the consumer spending component of GDP remains strong.
Overall, consumer spending is expected to continue to support US economic growth, with delayed third-quarter GDP data due next week.
