Retail sales fall, helping to send stocks down
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Shoppers pulled back in September after their summer spending splurge.
Retail sales fell 0.3% from August, as consumers spent less on autos, building materials and clothing, the Commerce Department said Wednesday.
The decline was deeper than a 0.1% drop analysts expected and followed robust spending in recent months. In August, retail sales climbed 0.6% -- the most in four months.
The poor showing helped send stocks down Wednesday. The Dow Jones industrial average fell 204.34 points, or 1.25%, in late morning trading on Wall Street.
Some economists have cautioned the earlier summer retail gains weren’t likely to continue. Recent job growth in the U.S. simply hasn’t translated into higher paychecks for most workers, they say.
Jay Feldman, an economist at Credit Suisse, called the September data “ugly.”
“Short-run momentum has clearly tailed off,” he said in a research note.
Motor vehicle and parts receipts dropped 0.8% from August. Stripping out those items, retail sales fell 0.2%.
Building materials and supplies dealers reported a 1.1% decline in sales. Clothing and accessories store sales dropped 1.2%. Home furnishing sales declined 0.8%
One bright spot was electronics and appliance stores, which posted a 3.4% sales increase. The release of Apple’s new iPhone may have helped boost electronics sales.
Twitter: @khouriandrew
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