This month's retail headlines cover U.S. GDP growth, holiday spending, an increase in new car sales, and more.
U.S. GDP Grew at a 4.9% Annual Pace in the Third Quarter
The U.S. economy grew even faster than expected in the third quarter, buoyed by a strong consumer in spite of higher interest rates, ongoing inflation pressures, and a variety of other domestic and global headwinds. Gross domestic product, a measure of all goods and services produced in the U.S., rose at a seasonally adjusted 4.9% annualized pace in the July-through-September period, up from an unrevised 2.1% pace in the second quarter, the Commerce Department reported.
September Retail Sales Signal Tepid Holiday Spending
U.S. retail sales in September held fairly steady, rising 3.4% overall in the sectors tracked by Retail Dive, according to the numbers released monthly by the U.S. Department of Commerce. Still, the report portends a tepid holiday shopping season, analysts say. While inflation has eased, freeing up household funds for discretionary spending, consumers remain under pressure on several fronts.
Holiday Spending to Surpass Pre-Pandemic Levels: Deloitte 
As holiday retail sales are expected to increase, holiday shopping budgets are expected to grow 14% from last year to $1,652 on average, according to Deloitte’s 2023 Holiday Retail Survey of 4,318 U.S. consumers. This year’s holiday spending is predicted to surpass pre-pandemic levels. Shoppers are increasing their holiday budgets across income levels, but for those starting to repay student loans nearly half may cut back on spending.
Amazon Says October Prime Day Outpaced Last Year’s Event
Amazon’s fall Prime deals bonanza “outpaced” last year’s event, the company said, as discount-hungry consumers got an early jump on holiday shopping. It marks the second year Amazon has held the shopping event, which is a fall follow-up to the company’s main Prime Day sale held in July. Amazon said Prime members, who pay $139 per year for fast shipping and other perks, ordered more than 150 million items from third-party sellers, up from about 100 million items in 2022.
U.S. New-Car Sales Seen Rising More than 13% in September
Retail new-car sales are projected to be up 8% year-on-year. U.S. sales of new vehicles are expected to jump more than 13% in September, which would be the second straight month of double-digit sales as a strike hampers production at the Big Three automakers. That's according to a joint forecast from J.D. Power and GlobalData, who projected the sale of 1,309,900 vehicles through retail as well as wholesale channels for the month, a 13.8% rise from September 2022.
Black Friday Comes to Best Buy Early
Best Buy is offering Black Friday deals before Halloween and store employees will have Thanksgiving Day off. The consumer electronics retailer is launching its Black Friday Early Access for Members sale aimed at My Best Buy Plus and My Best Buy Total loyalty program members on Friday, Oct. 27. Early Black Friday deals on product categories including TVs, computing, gaming, and electronic transportation will be offered to all shoppers starting Monday, Oct. 30.
Recent Resources:
