U.S. retail sales remained resilient in October 2025, holding steady with a 0.1% month-over-month increase, according to seasonally adjusted data released by the U.S. Census Bureau. The figure matches September’s revised gain, maintaining momentum despite broader economic headwinds. Total retail sales for the month reached $633.2 billion, reflecting sustained consumer spending at a time of persistent inflation and elevated interest rates. While the latest rise marks a continued expansion, it also underscores a notable slowdown in growth pace—the third consecutive month of marginal gains following stronger advances earlier in the year.
Over the past six months, retail sales have posted diminishing monthly increases: after a dip of 0.9% in May, growth rebounded with gains of 1.0%, 0.7%, and 0.5% from June through August, before settling at 0.1% in both September and October. This trend suggests that while consumer demand has not contracted, its forward momentum has cooled significantly, likely influenced by tighter household budgets and cautious spending behavior.
Underlying sector data reveal a shift in consumption patterns, highlighting divergent performance across retail categories. Notably, non-store retail trade—including e-commerce platforms and direct-to-consumer channels—surged 1.8% in October, marking one of the strongest performers among subsectors. This robust growth reflects ongoing consumer preference for digital shopping experiences and may signal structural changes in buying behavior as online retailers expand offerings and improve logistics. In contrast, food and beverage services saw a decline of 0.4%, indicating softening demand in the dining-out segment. The drop could be attributed to rising menu prices, reduced discretionary income, or a shift toward home cooking amid cost-of-living concerns.
Economists suggest that the overall stability in total retail sales, supported by strength in e-commerce, is helping to anchor consumer spending—a key pillar of the U.S. economy. However, the stagnation in monthly growth and weakness in service-oriented segments like restaurants point to underlying fragility. “Consumers are still spending, but they’re being more selective,” noted one analyst. “The jump in online retail shows adaptability, but the pullback in dining suggests limits to how long this balance can hold.” As inflation pressures persist and wage growth moderates, the sustainability of current consumption trends will depend increasingly on labor market resilience and household financial health.