US retail sales rose 0.3% m / m in October. Measured against expectations, the number is disappointing. It was clear that the October figures could not come close to the requirements of the previous month. The strong catch-up effects following the containment measures to combat the corona pandemic expired in September. Nevertheless, a little more was to be expected in October, precisely because a considerable discount battle was already going on in the USA. From October 13th to 14th, Amazon attracted customers to its platform with substantial discounts. In addition, the stationary retail trade countered the Amazon Prime Day with discounts. The discount battles began early this year, even by American standards. Precisely for this reason, a slightly higher retail turnover was to be expected. The so-called “control group” only showed an increase of 0.1% compared to the previous month. The control group includes all US retailers except food, automobiles, building materials, and fuels.
The retail sector is likely to already suffer from the recent corona wave. The number of new infections also climbed dangerously across the Atlantic. Even if Donald Trump is not a fan of containment measures, the virus is met with restrictions at the state level. An urgently needed second rescue package is also a long time coming. Without government aid, the US economy will be uncomfortable over the winter. Actually, it was to be assumed that the US economy could “eat its bacon” with solid retail sales in October. The buffer is now relatively tight.
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