US October Retail Sales Slump... Weakness in New York Stock Market

Only a 0.3% Increase

[Image source=EPA Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] A red light has been lit on consumption, which accounts for two-thirds of the U.S. economy. The New York stock market, which had been strong on hopes for a COVID-19 vaccine, has turned weak again.

The U.S. Department of Commerce announced on the 17th (local time) that retail sales in October increased by 0.3% compared to the previous month. This fell short of the market expectation of a 0.5% increase compiled by Dow Jones.

Retail sales have increased for six consecutive months recently, but October saw the lowest growth rate. Core retail sales, excluding automobiles, gasoline, and food, also increased by only 0.2% compared to the previous month.

This is interpreted as U.S. consumers closing their wallets due to the resurgence of COVID-19 and the suspension of unemployment support measures.

However, online shopping sales increased by 3.1% compared to the previous month. This is attributed to Amazon's 'Prime Day' sale event.

The weak consumption indicators are also dragging down the U.S. stock market. As of 10:20 a.m. on the day, the Dow Jones Industrial Average was down 1.1%, the S&P 500 index was down 0.8%, and the Nasdaq index was down 0.3%.

This content was produced with the assistance of AI translation services.