Consumer Spending Unexpectedly Cools In September

-edited

Retail sales floundered in September, even taking in account an upward revision in August.

Econoday economists expected a 0.3% increase in retail sales in September. Instead they declined by 0.3%. The decline was partially offset by an upward revision in August from 0.4% to 0.6%.

This morning, the U.S. Census Bureau announced Advance Monthly Retail Sales for September.

  • Advance estimates of U.S. retail and food services sales for September 2019, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $525.6 billion, a decrease of 0.3 percent from the previous month, but 4.1 percent above September 2018. Total sales for the July 2019 through September 2019 period were up 4.0 percent from the same period a year ago.
  • The July 2019 to August 2019 percent change was revised from up 0.4 percent to up 0.6 percent. Retail trade sales were down 0.3 percent from August 2019, but 4.0 percent above last year. Nonstore retailers were up 12.9 percent from September 2018, and miscellaneous stores were up 9.3 percent from last year.

Retail Sales Categories

Same Old Story

It's the same old story. Brick and mortar department stores and electronic stores are getting clobbered by nonstore retailers such as Amazon.

Mike "Mish" Shedlock

Comments (8)
No. 1-6
Tony Bennett
Tony Bennett

"Unexpectedly"

...

There is that word. Again.

jivefive99
jivefive99

The credit that was removed from the economy during 2009-2010 (two of my credit cards had their credit limit reduced) started tobe restored in 2012 onward, and now all that killed credit has been used up and is now back to where were were just before the "Great Recession" started. Makes sense. Forward will be a lot harder.

JeanM
JeanM

I blame it on the weather.

LB412
LB412

They were still up 4.1% year over year. Seems pretty solid to me.

Harry-Ireland
Harry-Ireland

Isn't consumerspending something like 70% of the US economy? My question also is, how does Amazon get away with underpaying taxes as opposed to mom&pop businesses or other brick and mortar stores? Because that must be an enormous amount in uncollected taxes, now that Amazon is evermore growing.

ReadyKilowatt
ReadyKilowatt

It's their own fault. I had to buy a replacement tire for my bicycle. I was told when I bought the bike that it ran tubeless tires/wheels, and this being the first bike with tubeless I went to the bike shop to buy the same tire. I asked about the installation process, the salesperson wasn't sure if the tire was really a tubeless tire, the mechanic (who didn't seem to be too interested in assisting, possibly an employee conflict), didn't say much other than to call the manufacturer's help line etc. The help line said the tire could be used with or without an inner tube, so I bought the tire.

When I installed it, the old tire had a tube.Well, the salesperson said it would work tubeless so pressed on. After two attempts and watching the thing leak I went online and found out that no, this tire is NOT a tubeless tire, but a similar model number is. Seems to me Amazon would have figured that out, where the local bike shop employee didn't. The LBS in question used to be the best one in town, but changed ownership and personnel, so now, not so much. Still OK if you need something in a pinch, but otherwise forget it.