Purchases increased 0.3 percent after a 0.3 percent drop in September, the Commerce Department reported today in Washington. The median forecast in a Bloomberg survey of 86 economists projected a 0.2 percent advance. Eleven of 13 major categories showed gains, indicating broad-based growth.
The lowest gasoline since 2010 and rising stock and home values are boosting consumer confidence and disposable income, raising the odds that spending will continue to improve through year-end. Falling unemployment also means more Americans have extra cash, brightening the outlook for holiday sales even as bigger wage gains have been slow to materialize.
"It's good news," said Guy Berger, a U.S. economist at RBS Securities Inc. in Stamford, Connecticut, who is among the top retail-sales forecasters over the past two years, according to data compiled by Bloomberg. "Paychecks are actually getting a little bigger, more people have jobs and, in inflation- adjusted terms, people have more in their wallets and they're willing to spend it."
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