Personal Spending Increased in October, as Retail Prepares For a Record-Breaking Season

October was a landmark month in terms of pandemic recovery. Personal household spending rose 1.3% in October compared to September, according to data from the Commerce Department. Personal income increased 0.5%, as employers increase wages across industries to fill roles in a competitive labor market. The growth in household spending comes amid a period of record inflation. Consumer prices rose by 6.2% in October compared to a year ago, according to the Bureau of Labor Statistics’ monthly report. This number represented the highest inflation rate since the 12-month period ending in November 1990. Despite higher prices, people are set to break shopping records this year. A recent survey from ICSC showed that shoppers will likely spend an average of $491 throughout Thanksgiving weekend. According to an Adobe report, consumers have already spent $72.2 billion online so far this holiday season, marking a 19.8% growth from last year. Adobe predicts that online sales will hit $207 billion this year, which would mark the first time that the online retail holiday season crosses $200 billion. “The increase in personal income in October primarily reflected bumps in compensation of employees and personal income receipts on assets that were partly offset by a decrease in government social benefits,”

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