Retail Sales Keep Growing as Holiday Deals Start

Retail Sales Keep Growing as Holiday Deals Start

USA retail sales accelerated in September, rounding out a strong quarter of economic activity, but the recovery from the COVID-19 recession is at a crossroads as government money runs out and companies continue to layoff workers.

"It's further evidence of how many top earners have managed to dodge the pandemic by working from home, while most lower- paid workers have been forced to choose between jobs putting them at risk, when they can find them, and unemployment", said Chris Low, chief economist at FHN Financial in NY.

August posted a 0.6% increase, as U.S. consumer spending continues to lead a fragile economic recovery.

On the upside, non-store retail sales (up 0.5 percent in September and 23.8 percent from September 2019) are 23 percent above January 2020 levels (see fourth chart).

For Gregory Daco and James Watson at Oxford Economics, Friday's data likely market a "last hurrah" for the U.S. consumer at the end of summer.

"The boom in retail sales continues with new highs in a September surge", said Charlie Bilello of Compound Capital Advisors on Twitter. A full return to pre-pandemic conditions for the overall economy and the labor market is likely many months, and possibly many quarters, away, but at least the process is underway.

Three-quarters of retail categories saw both month-over-month and year-over-year increases.

Retail sales, a measure of purchases at stores, restaurants and online, increased a seasonally adjusted 1.9% in September from the prior month, the Commerce Department said Friday. The biggest monthly gain came at clothing stores, although their sales remained below last year, while the largest year-over-year increase was seen online. Receipts at clothing stores jumped 11.0%.

General merchandise stores were up 1.8% month over month seasonally adjusted and up 4.1% unadjusted year over year. Electronics and appliance stores were the only major segment to post a decline.

Nonetheless, economists say the high rate of personal savingshoppers socked away 14.1% of disposable revenue this August in contrast with 7.3% a 12 months earlierhas given households gasoline to spend, regardless of the lower to an additional $600 per week in jobless advantages on the finish of July.

Food and beverage stores were virtually unchanged month over month seasonally adjusted, but up 11.5% unadjusted year over year.

Classes associated to the booming housing sector carried out nicely in September, in response to Fridays report, with gross sales at home-improvement and furnishings shops each rising final month.

Electronics and appliance stores were down 1.6 percent month-over-month seasonally adjusted and down 6.1 percent unadjusted year-over-year. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article.

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