US retail sales rise 0.8% in September on petrol spending

Summarised from 2 outlets · Updated 15 Oct, 19:02 · Archive

US retail sales increased 0.8% in September, with much of the rise driven by higher petrol prices.

US retail sales increased 0.8% in September, following a revised 1.3% gain in August, the Commerce Department reported on Thursday. Economists had been anticipating a 0.3% increase for the month, so the headline figure exceeded expectations.

However, much of the increase reflected rising petrol prices rather than increased consumer spending. Sales at petrol stations rose 6.4%. Excluding petrol, retail sales grew only 0.2%. Other retail sectors showed modest movement: furniture and home furnishings stores rose 1.3%, electronics and appliances were up 0.6%, and online retailers increased 0.3%. Restaurants registered a solid 1.1% gain, whilst clothing and accessories stores remained flat.

Michael Pearce, chief US economist at Oxford Economics, noted that 'the large jump in headline retail sales in September was almost entirely due to rising gasoline prices'. He said consumer spending remains on track for a 3.3% annualized gain during the third quarter, but predicted momentum would slow heading into the holiday shopping season as higher prices weigh on consumers. The government figures are not adjusted for inflation, which accelerated last month.

How it is being reported

• Retail sales up 0.8% in September, but a big chunk of spending went to paying gasoline billsShoppers showed their willingness to spend in September even after a better-than-expected splurge in August.Clickorlando · 15 Oct, 13:32
• Retail sales up 0.8% in September, but a big chunk of spending went to paying gasoline billsShoppers showed their willingness to spend in September even after a better-than-expected splurge in August.News4Jax · 15 Oct, 13:32

In this story: United States · Commerce Department · Oxford Economics · Michael Pearce

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