US retail sales rise 0.6% in September
US retail sales rose in September, according to data from the Commerce Department.
Sales were up 0.6% following a revised 0.2% drop in August, in line with economists’ expectations.
Core retail sales – which exclude auto sales – were up 0.5%, beating expectations of a 0.4% increase.
Sales at gas stations rose 2.4%, while sales at restaurants were up 0.8%. On the downside, department store sales fell 0.7% last month.
Dennis de Jong, managing director at UFX.com, said: “Following a disappointing August, Fed Chair Janet Yellen will be pleased to see retail sales rebound strongly in September.
“A mixed bag of economic data in recent months has seen the US branded something of a Goldilocks economy, and has persuaded Yellen and her colleagues to stick with the status quo on interest rates. It appears unlikely this will change at next month’s FOMC meeting – which comes just days before the presidential election – but observers are increasingly confident that December will finally bring the long-awaited interest rate hike.”
Chris Williamson, chief business economist at IHS Markit, said “A rebound in US retail sales in September masks worrying signs of a slacking-off in the underlying trend in consumer spending to the worst for over three years, suggesting the economy is struggling to pull out of the malaise seen in the first half of the year.
“While the September upturn is good news, take a step backwards and it’s clear that the picture is not so bright. The September upturn leaves total sales 0.7% higher in the third quarter, less than half of the 1.5% expansion seen in the second quarter.”