U.S. retail sales strengthened in September by more than forecast. The U.S. economy continues to show solid growth. And the economic strength continues to say that there’s less need for the Federal Reserve to cut interest rates by a larger-than-usual 50 basis points at its November 7 meeting.
The value of retail purchases, unadjusted for inflation, increased 0.4% in the month after a 0.1% gain in August, the Commerce Department reported today.Excluding autos and gasoline sales, retail sales climbed 0.7%.
In the retail sales data, ten of the report’s 13 categories posted increases, led by miscellaneous store retailers, which include florists and pet stores. Apparel and grocery stores also posted solid advances. Receipts at gasoline service stations decreased, reflecting cheaper prices at the pump. Auto sales barely rose, defying expectations for a bigger increase.
In a separate report, the Bureau of Economic Analysis showed wages and salaries, unadjusted for price changes, increased 0.5% in August—-the most in three months.
The retail also largely reflect purchases of goods, which comprise a relatively narrow share of overall consumer outlays. Spending at restaurants and bars, the only service-sector category in the retail report, increased 1% last month, the most in nearly a year.
