Retail sales in the United States. September 2023 retail sales grew from the prior month in the United States, reflecting continued resilience in the American consumer despite predictions of a slowdown.
Retail sales rose 0.7% in September from the previous month, more than double Wall Street’s estimates for 0.3% growth. Sales excluding auto and gas increased 0.6%, above estimates for a 0.1% increase compiled by Bloomberg. Meanwhile, August’s sales were revised up to 0.8% from a previously reported 0.6% increase.
The September report, released by the Commerce Department, offers a snapshot of consumer spending at a time when economic data has been coming in largely stronger than expected despite the Federal Reserve’s interest rate hiking campaign as the central bank seeks to cool inflation.
September’s retail sales growth comes despite mounting headwinds facing the consumer like a tightening credit environment, gas prices hitting 2023 highs to end the summer and the resumption of student loan payments.
“While mounting headwinds to consumer incomes mean we expect spending growth to slow in the months ahead, the risks that spending contracts outright are fading,” Oxford Economics lead US economist Michael Pearce wrote in a research note on Tuesday.
Nine of the 13 categories highlighted in the release saw increases from a month ago while sporting goods was the lone category unchanged from August. Sales at miscellaneous store retailers led all categories, shooting up 3% from August. Sales at nonstore retailers popped 1.1% while sales at motor vehicle & parts dealers was the other leader, rising 1% from September.
The biggest laggards were electronics & appliance stores as well as clothing sales which both dropped 0.8% compared to the month prior. Resilient consumer spending has been considered one of the key factors that has kept the US out of a recession in 2023 but some banks have recently indicated a slowdown is still likely ahead.
JPMorgan CEO Jamie Dimon noted on Friday that consumers and businesses “generally remain healthy,” but their cash buffers are being spent down. Bank of America CEO Brian Moynihan described the state of the US economy as one in which the consumer is still spending ahead of last year but “continuing to slow.”
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