US retail sales miss forecasts in September, further slowdown seen
The US consumer reined in spending sharply last month and economists believed a further slowdown was on the cards.
According to the Department of Commerce, total retail sales volumes edged up by 0.1% month-on-month in September to reach $509.0bn, falling short of economists' forecasts for an increase of 0.7%.
Sales excluding automobiles and parts meanwhile dipped by 0.1% on the month, although if gasoline was also left out then they rose by 0.2% to roughly $342bn.
The biggest gains in sales in September were seen in those of Electronics and Appliance stores, which grew by 0.9% versus August, and in sales of Furniture and Home Furnishings, which increased by 1.1%.
Sales of Motor vehicles & Parts meanwhile were up by 0.8%, alongside a gain of 0.7% in those at Sporting Goods and Hobby stores.
Gasoline station sales on the other hand declined by 0.8% over the month, as did those at department stores.
In comparison to one year ago, retail sales were 4.7% higher.
Commenting on Monday's retail sales figures, Andrew Hunter at Capital Economics pointed out the still "strong" growth of 0.5% month-on-month in the so-called 'control' group of retail sales, which excludes those of automobiles, gasoline and building materials.
In terms of quarterly rates of change, and when adjusted for changes in inflation, the rate of growth in retail sales only slowed from 3.8% over the second quarter to 3.5% over the latest three-month stretch, he explained.
"Overall, the current strength of underlying retail spending reflects the continued boost to incomes from the tax cuts enacted at the start of the year," he said.
"That said, sales growth looks most likely to slow in the fourth quarter as that boost starts to fade, and we still expect a more marked slowdown in real consumption growth over the course of next year."