WASHINGTON — U.S. retail sales declined in September even when factoring out weakness at auto dealers and gasoline stations, providing a surprisingly cautionary sign for the strength of consumer demand.þþTotal 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.þþAnalysts 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.þþWhat 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 consumerþþspending component of gross domestic product. Economists polled by Reuters had expected the reading to increase. Instead, it fell 0.2 percent in September.þþSales at clothing retailers dropped 1.2 percent and receipts at sporting goods shops edged 0.1 percent lower.þþSales at electronics and appliance stores, however, jumped 3.4 percent, while receipts at building materials and garden equipment suppliers declined 1.1 percent.þþReceipts 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 broaderþþeconomy. This could free up income and support discretionary spending in the months ahead.þþRetail sales account for a third of consumer spending.þþ(Reporting by Jason Lange; Editing by Andrea Ricci)þ
Source: NY Times
