Retail Sales Fell By More Than Expected In September

(RTTNews) - Retail sales fell by more than expected in the month of September, according to a report released by the Department of Commerce on Wednesday, with the decrease in sales partly due to a substantial drop in auto sales.

The report showed that retail sales fell by 1.2 percent in September following a revised 0.4 percent decrease in August. Economists had expected a more modest decrease in sales of about 0.7 percent compared to the 0.3 percent decrease originally reported for the previous month.

With the monthly decrease, retail sales in September were down 1.0 percent compared to the same month last year. This compares to the 1.5 percent year-over-year growth that was seen in August.

The bigger than expected monthly decrease in retail sales was due in large part to a 3.8 percent decrease in sales by motor vehicle and parts dealers, which came on the heels of a 1.7 percent increase in sales in the previous month.

Excluding the drop in sales by motor vehicle and parts dealers, retail sales fell by a more modest 0.6 percent in September compared to a 0.9 percent decrease in August. The drop in ex-auto sales still exceeded economist estimate of a 0.2 percent decrease.

Notable decreases in sales by furniture and home furnishings stores, clothing and clothing accessories stores, and electronics and appliance stores contributed to the bigger than expected drop in ex-auto sales.

At the same time, the report showed a modest increase in sales by gas stations, which edged up 0.1 percent in September after falling 3.0 percent in August. Health and personal care stores also reported a modest increase in sales.

With consumer spending making up about two-thirds of U.S. economic activity, the bigger than expected decrease in retail sales is likely to add to recent concerns about the outlook for the broader economy.

For comments and feedback: contact editorial@rttnews.com

Posted in Categories: Economy, Forex, Releases, USA.

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