US retail sales edge up in September
WASHINGTON — U.S. consumer spending edged up a slight 0.1 percent in September, a disappointing performance in which rebounding auto sales were offset by weakness in other areas.
But a category of retail sales that excludes volatile categories showed a much stronger 0.5 percent gain in September, a big improvement after no gain in August.
The Commerce Department said Monday that the scant overall gain in September followed an equally meager 0.1 percent increase in August.
It was the weakest twomonth performance since the start of the year and was well below economist projections of a solid 0.6 percent rise in sales.
Diane Swonk, chief economist at Grant Thornton, said the rise in the “control group” of retail sales, which excludes volatile areas such as autos and gasoline sales, is important because that figure feeds directly into the data for economic growth, as measured by the gross domestic product.
Bright spots in the report were online sales, furniture sales and sales at electronic stores, which were linked to the introduction of new iPhone models.
“Consumers continued to spend at a fairly rapid pace despite some pockets of weakness in September,” Swonk said.
Retail sales are closely watched for signs they can provide for consumer spending, which drives two-thirds of economic activity. The economy expanded at a sizzling 4.2 percent rate in the second quarter.