Retail sales in September declined by 1.5%, mostly due to the steep 10.4% drop in motor vehicle sales after the expiration of the Cash for Clunkers program, the Census Berueau reported today. Analysts had expected a decline of 2.1% in total sales for September.
“Retail sales in the third quarter saw its strongest gain in almost two years, due to the successful ‘Cash for Clunkers’ program,” U.S. Commerce Secretary Gary Locke said. “The healthy increase in sales excluding motor vehicles and gasoline over the past two months indicates that consumers are gaining confidence and spending is beginning to rebound. But much work remains. More stimulus spending in the coming months should further promote an upturn and put more Americans back to work.”
Gasoline sales increased by 1.1%, and sales excluding automobiles and gas increased .4% in September. In the third quarter as a whole, total retail sales rose 6.4% as an annual rate, and sales excluding the volatile motor vehicle and gasoline components rose 0.6%.
The advance estimate of U.S. retail and food services sales for September was $344.7 billion, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes. This is a decrease of 1.5% from the previous month and 5.7% below September 2008. Total sales for the July through September 2009 period were down 6.6% from the same period a year ago. The July to August 2009 percent change of +2.7% was downwardly revised to +2.2%.
Source:
U.S. Census Bureau
