Strong Retail Sales Last Month

More evidence that there’s no Double Dip at hand. The Commerce Department reported that retail sales rose by 1.1% last month. The number for August was also revised to show a 0.3% gain.

Higher food and energy prices crimped purchasing power earlier this year, while the debt ceiling crisis along with stock market losses undermined confidence. Recent data, meanwhile, showed that incomes fell in August, the first drop in nearly two years. That forced Americans to dig into their savings in order to maintain their living standards.

But September’s broad-based retail spending gains indicate a degree of optimism.

Friday’s data showed a 3.6% jump for auto and parts sales. Excluding cars, overall retail sales were up 0.6%. Economists had expected retail sales excluding autos to climb 0.4%.

Restaurant, furniture, clothing, department store and non-store retail sales–a category that includes the internet–all posted gains. Gasoline station sales also showed another increase.

Posted by on October 14th, 2011 at 9:15 am


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