Home News Economics The US retail sales rose by 0.1% in September

The US retail sales rose by 0.1% in September

US retail sales

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The US retail sales rose by 0.1% in September, just as in the previous month, thus remaining below expectations for more serious expansion of 0.6%.

The recovery in motor vehicle sales was overshadowed by the biggest drop in sales made by restaurants and bars in nearly two years. The restaurants and bars reported 1.8% lower sales, which is their lowest performance since December 2016.

The retail sales in September rose by 4.7% year-on-year.

Excluding sales of cars, gasoline, construction materials and services related to the food sector, the retail sales managed to grow by 0.5% on a monthly basis. These so-called basic retail sales correspond most to the component of consumer spending within the GDP.

The consumer spending in the US expands supported by the stable labor market, with the unemployment rate close to a 49-year low of 3.7%. Tightening the labor market contributes to wage growth.

A better result in basic retail sales indicates a rise in consumer spending, which should compensate for the expected slowdown in economic growth due to the growing trade deficit and the continuing weakness of the housing market.

The US economy grew by 4.2% in the second quarter and growth forecasts for the past three months of the year are over 3% on an annual basis.

Last month, car sales rose by 0.8% after shrinking in August by 0.5%. The revenue at gas stations decreased by 0.8%, possibly reflecting some decline in gasoline prices.

The sales in clothing stores are recovering at a 0.5% growth after falling by 2.8% in August. The online sales and mail sales rose by 1.1% in September after rising by 0.5% in the previous month. The revenues in furniture stores increased by 1.1%.