Increased sales could boost retail buying

September was a strong month for retailers across the country. Retail sales jumped 1.1 percent, to $412.9 billion - one of the biggest increases since October 2010.

Even though most categories saw significant improvement, electronics and appliances and automotive sales saw the largest increases in sales. It is thought that the electronics industry was boosted by the release of the iPhone 5. With strong retail sales and a recently reported decline in the unemployment rate, consumers are eager to spend this season. Their confidence has also been boosted to a five-year high, according to a Thomson Reuters and University of Michigan survey, which may be contributing to the increased spending.

An increase in consumer purchasing could lead to retail outlets changing up their buying strategies. While many retail stores kept inventories low while unemployment was high and sales were struggling, an increase in spending could force them to stock up on consumer goods, especially for the upcoming holiday season. This increase in retail buying could jump-start sluggish raw material providers, manufacturers and logistics operations. After two months in a row of more than 1 percent growth, things are beginning to look up for retailers relying on increased consumer spending.