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 Total retail sales dropped 0.3 percent during the month, the
Commerce Department said on Wednesday. Drops in receipts at gasoline
stations and auto dealers dragged on the reading.
Analysts had expected a fall in retail sales, as auto production has
cooled and oil prices have fallen sharply in recent months on signs
of slowing global economic growth.
What came as more of a surprise was a drop in so-called core sales,
which strip out automobiles, gasoline, building materials and food
services, and correspond most closely with the consumer
spending component of gross domestic product. Economists polled by
Reuters had expected the reading to increase. Instead, it fell 0.2
percent in September.
Sales at clothing retailers dropped 1.2 percent and receipts at
sporting goods shops edged 0.1 percent lower.
Sales at electronics and appliance stores, however, jumped 3.4
percent, while receipts at building materials and garden equipment
suppliers declined 1.1 percent.
Receipts at auto dealerships fell 0.8 percent, as did sales at
service stations. The drop in gasoline sales reflected declining oil
prices and is potentially positive for the broader economy. This
could free up income and support discretionary spending in the
months ahead.
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Retail sales account for a third of consumer spending.
(Reporting by Jason Lange; Editing by Andrea Ricci)
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