Retail sales showed growth in October, with both monthly and year-over-year gains, according to the CNBC/NRF Retail Monitor, released by the National Retail Federation (NRF).

According to the report, total retail sales, excluding automobile dealers and gasoline stations, were up 0.6% seasonally adjusted month over month and up 5% unadjusted year over year in October. That compared with September’s decrease of 0.66% from the month before and an increase of 5.42% year over year in September.

General merchandise stores were up 0.58% month over month seasonally adjusted and up 6.99% year over year unadjusted.

“Retail sales grew in October as consumers geared up for the holiday season,” NRF President and CEO Matthew Shay said. “Recent economic data has been mixed, yet consumer spending remains solid—supported by wage growth outpacing inflation, historically low unemployment and wealth effects from strong stock market valuations. These factors point to continued momentum heading into the holidays as consumers focus on family, friends and finding value to make their budgets go further.”

NRF also reported that total sales were up 5.11% year over year for the first 10 months of the year and core sales were up 5.28%. The October results come as NRF is forecasting that 2025 holiday sales will increase between 3.7% and 4.2% compared with 2024 to just over $1 trillion.

In other recent economic news, earlier this month McDonald’s revealed it took a hit last quarter as visits from lower-income customers decreased. The QSR chain saw traffic among the cohort drop “nearly double digits” in its latest quarter, chief executive Christopher Kempczinski told investors in an earnings call. These customers are disproportionately feeling the strain of mounting economic pressures, including higher prices on groceries and apparel as well as the growing cost of rent and childcare, he said.