U.S. retail sales rose 0.8% in September, exceeding economists’ expectations of a 0.3% increase, according to data released on October 15 by the U.S. Census Bureau. August sales were revised upward to a 1.3% gain.
However, much of September’s increase was driven by higher gasoline prices, which pushed up receipts at fuel stations. Excluding gasoline stations, retail sales rose by just 0.2%.
Underlying consumer demand showed a more cautious picture. Core retail sales, excluding autos, gasoline, building materials and food services, increased by only 0.1%, below expectations.
The figures suggest that while Americans continue to spend, higher prices are contributing significantly to headline growth. The strength of consumer demand remains an important factor for the outlook for the U.S. economy and the Federal Reserve’s interest-rate decisions.
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