Tue. Nov 12th, 2019

Retail sales in the USA on a decline

The retail sales in the USA have experienced a fall for the first time in a span of seven months in the month of September. This decline in retail sales has raised fears of a possible slowdown in the manufacturing sector, which can begin to bleed in the consumer side of the economy.

The retail sales dropped by 0.3% as many households cut down spending on online purchases, building material, and automobiles. This decline is the first since February.

The auto sales came down by 0.9% in the month of September, which is the most in eight months alongside the receipts at the service stations, which came down by 0.7% in a situation that reflects cheaper gasoline.

Withholding building materials, food services, automobiles, and retail gasoline sales changed a little in the month of September after rising by 0.3% in August.

The drop in sales in September and the gain in core sales in August hinted at a slowdown in the spending of consumers in the third quarter, which the economists had been anticipating after an upward movement in the preceding quarter.

Michael Pearce, a senior U.S. economist at Capital Economics stated that the drop in retail sales in September was driven partly by a price that related to a fall back in the gasoline prices, also the fact that the underlying control group of retail sales remained unchanged, provided one more clear signal of the slowing consumption growth.