Retail Sales Continue to Boost America's Economic Power
Retail Sales Growth in September
American shoppers are powering retail sales, as spending at US retailers climbed 0.4% in September from the prior month, according to fresh government data released Thursday. This increase is significantly stronger than August’s gain of 0.1% and aligns with economists’ forecasts in a FactSet poll.
Key Highlights from the Retail Sales Report
- Specialty stores saw a rise of 4%.
- Clothing stores increased by 1.5%.
- Health and personal care shops grew 1.1% in sales.
- Bars and restaurants experienced a 1% rise in spending.
- Sales declined at gas stations by 1.6% due to lower gas prices.
Excluding gas station sales, retail spending surged by a stronger 0.6%. However, electronics and appliance sales plummeted by 3.3%.
Consumer Spending: A Critical Economic Driver
Consumer spending accounts for about 70% of the US economy, and retail sales make up a substantial part of this. Despite inflationary pressures and elevated interest rates, the latest figures reassure that America’s economy is resilient and not nearing recession. The Federal Reserve recently enacted a half-point rate cut, marking its first reduction in over four years, partly to safeguard the job market.
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This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.