US retail spending slows in September

Shoppers on New York's 5th AveImage copyright
BBC World Service

US retail sales grew by only 0.1% in September, the US Commerce Department reported on Wednesday. Economists had predicted a rise of 0.2%.

The flat figure was mainly attributed to a fall in fuel prices and a slowing labour market.

US car sales did rise, but core sales, which exclude those, building materials and petrol- dipped by 0.1%.

The disappointing figures make it less likely that the Federal Reserve will raise rates in October.

Slow labour growth in the US is one reason believed to have curbed some discretionary spending by Americans.

Third quarter growth in the US was also revised down to 1.7%.

The Fed is looking for 2% growth to justify increasing its benchmark rate.

What Next?

Recent Articles

Leave a Reply

You must be Logged in to post comment.