Rolling in the Aisles

The force that gives the U.S. economy its pep is being generated more and more in the teeming aisles of the nation's stores. From the Commerce Department last week came an estimate that retail sales in October reached $18.3 billion on a seasonally adjusted basis, a 7.8% gain over last year's level and the first time October sales have burst through the $18 billion mark. In November's first week, sales in U.S. department stores were running 5% ahead of last year. Retail sales for the first ten months of 1959 total $179.9 billion, 9% above 1958. At that rate, they will push well over $200 billion by year's end, a new alltime record.

The most remarkable fact about consumer buying is that nothing seems to deter it. During both the recession and the steel strike, consumers held to their buying pace, thus bolstered the economy in a key area just when it needed support. Now, though personal income has leveled off, the consumer is still stepping up his spending.

Installment buying is one of the major causes of the phenomenon, along with the changing habits of U.S. consumers. They no longer hold on to suits, coats and dresses as if they were heirlooms; determined promotion campaigns keep apparel one of the hottest selling items. Furniture, refrigerators, rugs--all once bought to last for years or life--are now replaced with register-tingling regularity.

Such nondurable goods as clothing, food and gasoline still account for two-thirds of the consumer's purchases, reached a sales total of $12 billion in October. Bigger gains have been run up in the durable field (see chart), where October sales hit $6.3 billion, up 17% over last year and nearly 10% over September. The durables got a hefty boost in October from soaring sales of Detroit's 1960 auto models, will probably level off this month because of a shortage of cars caused by the steel strike.

The strike caused no shortage in other areas where the consumer likes to pour out his cash. September output of major appliances was up 30% over last year, radio-television output up 28%, production of textiles and clothing up 14%. With steelworkers back at their jobs and laid-off auto workers gradually going back, merchants are already looking forward to record Christmas buying.

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