Surprise Surge: Shoppers Boost September Retail Sales in the US
Surprising surge in September retail sales defies expectations, reflecting strong US consumer resilience. What's driving this unexpected trend? Find out here.
September saw a 0.7% jump in retail sales compared to the previous month, surpassing what Wall Street had predicted (0.3% growth). When we excluded car and gas sales, there was still a healthy 0.6% increase, far more than the expected 0.1%. August's sales also got a boost, revised up from 0.6% to 0.8%.
The Commerce Department's September report gives us a snapshot of how people are spending, showing that shoppers are still going strong despite the Federal Reserve's attempts to slow inflation by adjusting interest rates. Out of the 13 categories looked at, nine saw an increase in sales. Stores that sell miscellaneous items saw the most growth, shooting up by 3% from August. Online retailers also did well, with a 1.1% increase. Car dealerships also fared well, with sales going up by 1% from September.
However, stores selling electronics & appliances and clothing had a tougher time, with both seeing a 0.8% drop compared to the previous month.
Although people are still spending, some companies are getting ready for things to slow down a bit. JPMorgan's CEO, Jamie Dimon, said that while consumers and businesses are doing pretty well, they're starting to use up their savings. Bank of America's CEO, Brian Moynihan, said that the US economy is still chugging along, with consumers spending more than they did last year, but the rate of growth is slowing down.