US Retail Sales Suddenly Fell, A Signal That Consumer Economy Is Breaking

US Retail Sales Suddenly Fell, A Signal That Consumer Economy Is Breaking

In the recent times, U.S. retail sales dropped for the first time in 7 Months in September, elevating concerns that a downturn in the American manufacturing segment can begin to bleed in the consumer side of the financial system. The U.S. DOC (Department of Commerce) reported that retail sales fell by 0.3% in the last month as households reduced spending on online purchases, building materials, and in particular automobiles. This drop was the first since February. The statistics for August changed and showed retail sales earning 0.6% rather than 0.4% as earlier stated. The economists surveyed by Reuters forecasted that retail sales will surge by 0.3% in September. In comparison with September 2018, the retail sales jumped by 4.1%.

Ian Lyngen—Chief of Rates Research from BMO Capital Markets—said, “Whilst this is in no way conclusive proof that the customer is wavering, it, however, strengthens our ongoing worry that a spending cutback will eventually activate a more long-lasting slowdown.” The automobile sales dropped by 0.9% in September—which is the most in 8 Months—whilst receipts at service stations declined by 0.7% in what possibly hints cheaper gasoline. Withholding gasoline, automobiles, food services, and building materials, the retail sales were changed somewhat in the last month following climbing by 0.3% in August.

On a similar note, recently, stocks slipped as weak retail sales counterbalanced the solid earnings. The stocks fell vaguely as weak retail sales statistics—coupled with constant trade-war concerns—offset robust earnings results. The Dow (Dow Jones Industrial Average) fell by 22.82 points or 0.1% to settle at 27,001.98. The S&P 500 declined by 0.2% to 2,989.69 whilst the NASDAQ Composite fell by 0.3% to settle at 8,124.18. In September, the retail sales suddenly declined by 0.3% marking their first downbeat in the last 7 Months. Spending curbs on automobiles and online purchases, amongst other factors, dragged down retail sales.

Charlotte Brewer
Author Details
Sr. Content Writer At Global Industry News blog

Charlotte has pursued Masters in Business Administration in International Business from one of the top universities across the country. Earlier, she was working with one of the leading multinational companies and presently, she works as senior writer for our site. Charlotte overlooks the business domain and writes blogs, articles, and newsletters. She is associated with us from the last 5 Years and covers the latest business deals, mergers, acquisitions, earnings, and GDP outlook of major players worldwide. Charlotte has gained experience in this industry and is expert in enlightening about revenue management, financial strategies, analysis, operations, and entrepreneurship.

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