Retail sales in the US are being positively impacted by falling gasoline prices

Retail sales in the US are being positively impacted by falling gasoline prices. October consumer spending climbed 0.3%, in line with expectations. More importantly, the annual growth rate in retail sales came in at 4.1%. The growth rate has remained in the robust 4% plus range since March, and is a clear sign that consumers have more faith in the economy this year. What's more, with gasoline spending down 1.5% last month, consumers have more money to spend on everything else. In fact, retail sales minus gasoline are up a very healthy 5.1% over last year. While cheap oil has its own share of disadvantages for the economy, it's definitely good news for the average consumer. It also bodes well for retail stores as the holiday shopping season has officially begun. (VIEW LINK)