Americans May Be Settling Into Spending Less

ANNE D'INNOCENZIO

NEW YORK (AP) — Americans spent about the same amount in October as in August and September, according to figures released Thursday by a key data service, and they may be settling into new low-spending habits.

Including everything from toys to food, but not cars or gasoline, U.S. retail sales rose slightly in October — 1.5 percent — from a year earlier even as consumers grappled with rising unemployment and tight credit.

Compared with the month before, however, sales fell 2.3 percent in October, the biggest month-to-month decline since December 2008.

Thursday's figures from SpendingPulse, a service of MasterCard Advisors, are an estimate of spending in all forms including cash and offer fresh evidence that the holiday shopping season may be challenging for retailers.

Macy's Inc. said Wednesday that its sales have improved in recent months, and it reported a smaller third-quarter loss than a year earlier. But CFO Karen Hoguet said things remain very uncertain heading into a season that's crucial for most retailers.

A parade of earnings reports due Thursday and Friday from Wal-Mart Stores Inc., Nordstrom Inc., Kohl's Inc. and J.C. Penney Co. will offer a more textured read on consumers' recent spending.