- Paul Ashworth, chief U.S. economist at Capital Economics
Sales at US retailers rose modestly in September after being flat in August, the Commerce Department reported. Retail sales climbed 0.1%, against economists' expectations for a 0.2% growth. Americans boosted their spending at auto dealers, restaurants and clothiers in the reported month, whereas cheaper gasoline prices suppressed overall retail sales growth. Over the past 12 months, sales have increased 2.4%. Auto purchases surged 1.8% last month, while spending at restaurants edged up 0.7% and shopping at clothiers rose 0.9%. Retail sales excluding automobiles, gasoline, building materials and food services declined 0.1%, following a downwardly revised 0.2% gain in August. Core retail sales correspond most closely with the consumer spending component of GDP.
Spending increased amid a surge in hiring, with 2.8 million jobs created in the past year, but has since slowed in recent months. The slowdown, triggered largely by global headwinds, raised questions about whether retail sales and consumer demand can sustain economic growth in the coming months. US GDP rose a seasonally adjusted annual rate of 3.9% in the second quarter, up from previously reported 3.7%.
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