U.S. retail sales rebounded in September, with auto dealers and gas stations posting the biggest gains, in a sign consumers are still spending enough to keep the economy on a slow but steady growth path.
Retail sales rose 0.6% last month to recover from a small decline in August that was the first in five months. Economists had forecast a 0.7% increase.
One factor has been the frugal approach many Americans have taken to their shopping, the auto sector notwithstanding. In September, receipts at auto dealers increased 1.1%.
Still, auto dealers relied on sharply higher discounts to lure buyers, as demand for new cars and trucks appears to be leveling off after a years-long boom in sales. Auto purchases account for about one-fifth of all retail spending.
Sales at gas stations climbed a seasonally-adjusted 2.4% in a reflection of higher prices at the pump.
Excluding autos and gasoline, retail sales rose at more moderate 0.3% clip in September. The pace of sales during the third quarter was weaker than expected, spurring some economists to downgrade their estimates for gross domestic product.
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