October Retail Sales Flat Amid Motor Vehicle Weakness, Delayed Data Show

11:06 AM EST, 12/16/2025 (MT Newswires) -- Retail sales were flat in October as outlays on motor vehicles and at fuel stations declined, delayed data from the US Census Bureau showed Tuesday.

Sales remained unchanged in October, compared with the Bloomberg-compiled consensus for growth of 0.1%. The pace of increase in September was revised down to 0.1%.

The report was delayed because of a recent federal government shutdown.

On an annual basis, retail sales rose 3.5% in October, marking a deceleration from a 4.2% jump the month prior.

"October retail sales overall were a soft start to the fourth quarter," TD Economics Senior Economist Leslie Preston said in a separate note. "There were a few forces holding back headline retail sales in October, including the end of (electric vehicle) subsidies, lower gasoline prices and the impact of the government shutdown on government workers' spending."

Retail sales without the motor vehicle and gas components were up 0.5% in October on a sequential basis, compared with Wall Street's views for a 0.4% gain.

Motor vehicles and part sales dropped 1.6% month on month in October, while spending at gasoline stations decreased 0.8% following a 1.9% increase in September, according to the report.

Outlays on building materials and garden equipment declined 0.9%, while furniture and electronics stories logged gains.

"The better-than-expected momentum in core category spending increases our confidence that consumer spending is set to pick up in the first quarter of 2026," according to Preston. "The bigger concern is labor market softness which may weigh on the degree of the rebound in (the first quarter)."

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