Retail Sales Beat Forecasts Before Holiday Season
Spending held up better than expected, but discounting started earlier than usual.
By Sanly Wire1 min read
Retail sales rose more than economists had forecast last month, easing concern that consumer demand was about to roll over ahead of the holiday quarter.
The detail was less reassuring than the headline. Much of the gain came from promotions that began several weeks earlier than in previous years, suggesting retailers are buying volume with margin rather than meeting genuine demand. Electronics and household goods led; clothing was flat.
Retail groups said the coming six weeks will be the real test, since early discounting tends to pull spending forward rather than add to it.
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