2023-10-17 12:51:21
U.S. retail sales in September grew faster than market expectations. This suggests that consumer demand remains firm.
Key Points U.S. retail sales increased by 0.7% from the previous month Market forecast increased by 0.3% Previous month’s increase was 0.8% (preliminary estimate: 0.6% increase) Upwardly revised data does not include inflation adjustment
Retail sales excluding gasoline increased by 0.7%.
Core sales, which exclude restaurants, car dealers, building materials stores and gas stations, which are used to calculate gross domestic product (GDP), rose 0.6%.
Source: US Department of Commerce
In September, there was an increase in 8 out of 13 categories. Restaurants, car dealerships, and personal care products saw especially strong growth.
The latest statistics show that consumer spending remains strong despite the recent acceleration in inflation, driven largely by energy. Although wage growth is starting to slow, the labor market remains generally strong, giving consumers the leeway to continue spending.
Strong retail sales are likely to strengthen expectations that economic growth will accelerate in the third quarter.
The Federal Open Market Committee (FOMC) will move to raise interest rates again by the end of the year, as September’s price data showed persistent inflation and the latest retail sales data suggested continued strength in consumer demand. There is a risk.
Restaurants, the only service sector in retail sales, increased by 0.9%. Grocery stores increased by 0.4%.
See table for detailed statistics.
Original title:US Retail Sales Top Forecasts in Sign of Durable Consumer Demand(excerpt)
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