The US recorded solid retail sales growth over the past two months, demonstrating households’ capacity to spend and the strength of the economy, the National Retail Federation (NRF) said.

Data released by the US Census Bureau showed that overall retail sales in October were up 0.4 per cent seasonally adjusted month over month and 2.8 per cent unadjusted year over year. That compared with increases of 0.8 per cent month over month and 2 per cent year over year in September.

Clothing and accessories stores, which include jewellery shops, were down 0.57 per cent month over month seasonally adjusted but up 8.56 per cent year over year unadjusted.

“October’s pickup in retail sales shows a healthy pace of spending as many consumers got an early start on holiday shopping,” explained NRF Chief Economist Jack Kleinhenz. “October sales were a good early step forward into the holiday shopping season, which is now fully underway. Falling energy prices have likely provided extra dollars for household spending on retail merchandise.”

October’s core retail sales as defined by NRF – based on the Census data but excluding automobile dealers, gasoline stations and restaurants – were unchanged seasonally adjusted month over month but up 5.4 per cent unadjusted year over year.

NRF earlier predicted holiday spending in the US to surpass 2023 figures, owing to sustained momentum and solid economic growth. Sales between November and December this year could grow between 2.5 per cent and 3.5 per cent to US$979.5 billion and US$989 billion compared to US$955.6 billion during the same period last year.

NRF provides data on retail sales each month and forecasts annual retail sales and spending for key periods such as the holiday season each year.