Oct. 17 (UPI) — Retail sales in the United States rose 0.7% in September, more than doubling the growth anticipated by economists in a stronger-than-expected report, the Commerce Department said Tuesday.
The advance estimates of the retail and food services industry reached a seasonally adjusted $704.9 billion last month. Dow Jones had forecast a growth of 0.3%.
Excluding auto sales, the retail indicator grew 0.6%, again easily beating market experts who had predicted growth of 0.2%.
The report added that the September figure is 3.1% better than the mark set last September. The retail data, which is watched closely by the Federal Reserve as it considers future monetary policy, continues to defy worries of becoming sluggish or contracting under the weight of higher interest rates.
“The U.S. consumer cannot stop spending,” David Russell, global head of market strategy at TradeStation told CNBC. “All three retail sales reports for Q3 were above estimates, which puts us on track for a strong GDP number later this month. It also gives the Fed zero reason to loosen policy, which keeps the 10-year Treasury yield pushing toward 5%.”
Miscellaneous store retailers saw an increase of 3%, leading a list of sectors that saw positive gains. Online sales jumped 1.1% motor vehicle parts and dealers increased 1%, while food services and drinking places rose by 0.9%.
On the flipside, electronics and appliances stores and clothing retailers both saw declines of 0.8%.
