Retail sales flat in September with inflation hot
The pace of sales at U.S. retailers was unchanged in September from August as higher prices on rent and food constricted spending on other items
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Your support makes all the difference.The pace of sales at U.S. retailers was unchanged in September from August rising prices for rent and food chipped away at money available for other things.
Retail sales were flat for September, down from a revised. 0.4% growth in August, according to the Commerce Department on Friday.
Excluding sales from vehicle and gas stations, retail sales rose 0.3%. Excluding gas sales, spending was up 0.1%
While the report showed shoppers’ resilience, the figures also are not adjusted for inflation unlike many other government reports. In fact, sales at grocery stores rose 0.4% , helped by rising prices in food.
Business at restaurants ticked up 0.5%. Sales at furniture stores fell 0.7 %., while sales at electronics stores fell 0.8%. Online sales rose 0.5% last month.
Consumer spending accounts for nearly 70% of U.S. economic activity and Americans have remained mostly resilient even with inflation near four-decade highs. Yet surging prices for everything from mortgages to rent have upped the anxiety level. Overall spending has slowed and shifted increasingly toward necessities like food, while spending on electronics, furniture, new clothes and other non-necessities has faded.
“Even if people are employed and on paper look reasonably comfortable they are not feeling comfortable, and they are very concerned about what’s to come next," said Joel Rampoldt, a managing director in the retail practice at AlixPartners.