Retail sales show resilience in October as consumer spending held steady nationwide, offering encouraging signs for local businesses in the San Gabriel Valley despite broader economic headwinds.
Sales at U.S. retailers and restaurants were unchanged month over month in October, following a downward revision to September’s growth. On an annual basis, retail sales were still 3.5 percent higher than a year earlier. While that marked the slowest yearly growth rate in five months, it reflected a controlled cooling rather than a sharp pullback after a strong summer.
For communities such as El Monte, Baldwin Park, Rosemead, and Temple City, steady consumer spending often signals stability for neighborhood shops and service businesses. Local economies tend to benefit when households remain cautious but engaged, particularly heading into the holiday season.
Much of the October softness came from specific sectors rather than broad-based weakness. Analysts noted that consumer behavior continues to shift toward value-focused and convenience-driven purchases.
Retail Sales Show Resilience Beyond Auto Sector
The largest drag on October retail sales came from the auto sector, where sales of motor vehicles and auto parts declined 1.6 percent from the prior month. That pullback weighed heavily on the overall headline figure, masking stronger performance in other areas.
Restaurants and bars also saw a modest 0.4 percent month-over-month dip, a sign that some households may be dining out less as the job market cools. Even so, spending at food establishments remains above year-ago levels, suggesting demand has softened but not disappeared.
When auto sales are excluded, retail sales actually rose 0.4 percent in October. Online retailers posted a solid 1.8 percent increase, while department stores recorded a notable 4.9 percent gain. Those figures highlight areas of strength that are especially relevant for local shopping corridors and regional malls across the San Gabriel Valley.
Local merchants often benefit from these trends, particularly as shoppers look for deals, seasonal promotions, and convenient options close to home.
Positive Outlook for Holiday Shopping Season
Despite cautious spending patterns, early indicators point to a decent start for the holiday shopping season. While consumer spending may remain soft in November due in part to the federal government shutdown, analysts expect activity to rebound modestly in December.
For San Gabriel Valley businesses, that outlook supports measured optimism. Steady employment levels, combined with easing inflation pressures, may help sustain consumer confidence through the end of the year.
Retail sales show resilience in the face of economic uncertainty, suggesting households are adjusting spending habits rather than retreating entirely. For local retailers and restaurants, adaptability and competitive pricing are likely to remain key as shoppers balance budgets with seasonal traditions.
More information on national retail sales trends is available through the U.S. Census Bureau at https://www.census.gov/retail.
As the year closes, the data points to a consumer environment that is cautious but stable, providing a constructive backdrop for local commerce heading into 2026.
