US retail sales saw a smaller-than-anticipated increase in September, hinting at potential consumer fatigue as prices remain elevated. According to the Commerce Department’s Census Bureau, retail sales edged up by 0.2 per cent in September, following an unrevised 0.6 per cent increase the previous month. Economists’ forecasts anticipated a 0.4 per cent rise. This data reflects sales of goods and is not adjusted for inflation.
Year-on-year, retail sales experienced a 4.3 per cent increase. The release of this report, initially scheduled for mid-October, faced delays due to the 43-day US government shutdown. A component of September’s sales growth is attributable to higher prices, with service stations recording a 2.0 per cent advance in receipts.
Prior months witnessed accelerated sales, partly fuelled by consumers eager to purchase battery-powered electric motor vehicles before the expiration of EV tax credits at the end of September. Despite the moderation in retail sales growth, economists remain optimistic about solid economic expansion in the third quarter.
