South Florida Sun-Sentinel (Sunday)
Retail sales remained stagnant in September
NEW YORK — The pace of sales at U.S. retailers was unchanged in September from August as rising prices for rent and food chipped away at money available for other things.
Retail sales were flat last month, down from a revised. 0.4% growth in August, the Commerce Department reported Friday. Retail sales fell 0.4% in July.
Excluding sales of automobiles and at gas stations, retail sales rose 0.3%. Excluding gas sales, spending was up 0.1%
While the report showed the resilience of the American consumer, the figures are not adjusted for inflation unlike many other government reports. Sales at grocery stores rose 0.4%, helped by rising prices in food.
Evidence that the Fed’s fight to cool the economy may be taking hold can also be seen, particularly with big-ticket items. Sales at auto dealers fell 0.4% last month, and shoppers continued to pull back on appliances, electronics and furniture, all categories that did well during the early part of the pandemic. Business at consumer electronics and appliance stores fell 0.8%.
Sales at clothing stores rose 0.5%, while business at department stores rose 1.3% That indicates a solid back-to-school season but, adjusted for inflation, spending was modest, analysts said. Business at restaurants rose 0.5%, while online sales ticked up at the same pace.
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 have upped the anxiety level. Overall spending has slowed and shifted increasingly toward necessities like food, while spending on non-necessities has faded.