Retail sales in the U.S. fell by more than anticipated in the month of September, according to a report released by the Commerce Department on Wednesday, with the decrease partly reflecting the recent drop in gasoline prices.
The report said retail sales dropped by 0.3 percent in September after climbing by 0.6 percent in August. Economists had been expecting sales to edge down by just 0.1 percent.
The bigger than expected drop in retail sales was partly due to a continued decline in sales by gas stations, which slid by 0.8 percent in September after tumbling by 1.1 percent in August.
Falling gas prices contributed to the continued drop in sales by gas stations, although analysts noted that lower prices at the pump can contribute to increased spending in other areas.
The report also showed a notable pullback in sales by motor vehicle and parts dealers, which fell by 0.8 percent in September after jumping by 1.9 percent in August.
Excluding the drop in auto sales, retail sales still fell by 0.2 percent in September compared to a 0.3 percent increase in the previous month.
The pullback by ex-auto sales came as a surprise to economists, who had been expecting another 0.3 percent increase.
Sales by clothing and accessories stores, building materials and equipment dealers, and non-store retailers also showed significant decreases for the month.
Closely watched core retail sales, which exclude autos, gasoline, building materials and food services, also fell by 0.2 percent in September compared to expectations for a 0.4 percent increase.
Paul Diggle, an economist at Capital Economics, noted that the drop in core sales would have been even worse if not for a 3.4 percent jump in sales by electronics and appliance stores, which partly reflected sales of Apple’s (AAPL) new iPhone.
“Admittedly, it’s hard to square the drop in underlying sales with the strengthening labor market and the boost to real incomes from lower gasoline prices,” Diggle said. “As such, we expect sales growth to strengthen again before too long.”
The Commerce Department noted that total retail sales in the month of September were up by 4.3 percent compared to the same month a year ago. Sales were up 5.0 percent year-over-year in August.
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
U.S. Retail Sales Drop 0.3% In September, More Than Expected
No comments:
Post a Comment