U.S. Consumer Spending Falls 0.1 Percent in September

By IDEX Online Staff Reporter / October 20, 2019 / www.idexonline.com / Article Link

(IDEX Online) - Latest sales numbers from the National Retail Federation show almost no movement from August. Retail sales in September were down just 0.1 percent seasonally adjusted from August (+ 4.5 percent unadjusted year-over-year). The numbers exclude automobile dealers, gasoline stations and restaurants.

According to the U.S. Census Bureau, overall September sales - including auto dealers, gas stations and restaurants - were down 0.3 percent seasonally adjusted from August, but up 4.1 percent unadjusted year-over-year.

During September, online and other non-store sales were up 15.6 percent year-over-year but down 0.3 percent month-over-month seasonally adjusted. 

Jack Kleinhenz, NRF chief economist said the pullback in September compared to August is a possible reaction to increased fears over U.S.-China tensions." 

"While uncertainty around trade policy and other issues has dampened consumer sentiment recently, consumers still have a lot going for them as evidenced by longer-term trends and factors like the tight labor market."  

The government recently said that a scheduled tariff hike from 25 percent to 30 percent on $250 billion worth of goods from China would not take place as negotiators worked to finalize a tentative trade deal.

Kleinhenz also said that September is a tricky month to measure because of seasonal factors including the end of summer and back-to-school spending. In addition, this year's early Labor Day may have moved up some spending into the last days of August making comparisons even more difficult.

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