Analysis: Highly Anticipated U.S. September Retail Sales MoM Below Expectations
BlockBeats News, November 25th: In the United States, September retail sales growth was below expectations, taking a breather after recent strong gains. Data released on Tuesday showed a month-over-month retail sales growth of 0.2%, with August's unrevised increase at 0.6%. Economists surveyed had previously predicted a 0.4% growth in retail sales for the month.
Sales accelerated in the previous months, partly due to consumers rushing to buy electric vehicles before the September end of the tax credit. The slowdown in sales may not alter economists' expectations for a rebound in third-quarter consumer spending. Excluding automobiles, gasoline, building materials, and food services, retail sales in September fell by 0.1%, while August's retail sales were revised down to a 0.6% increase.
These so-called core retail sales closely align with the consumer spending component of GDP. However, current consumption is mainly driven by high-income households, with many low-to-middle-income consumers experiencing cost pressures, partly due to import tariffs, leading to what economists refer to as a K-shaped economy. (Jin10)
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