Home Tags Posts tagged with "us retail sales"

us retail sales

October retail sales rose less than expected as car sales fell in the US, stoking fears that consumer spending could hit economic growth in Q4.

According to the Commerce Department, retail sales rose 0.1% in October, after no change in September, and by 1.7% compared with October 2014.

Economists had forecast a rise of 0.3% for October.

There was a surprise 0.5% fall in sales at car dealerships, after a 1.4% increase in September.US retail sales October 2015

Robust car sales have underpinned overall growth in retail sales for the past two years.

The amount US shoppers spent online continued to rise, with online sales 7.1% higher than in October 2014.

However, sales during the run-up to Christmas will prove to be the real test of consumer confidence.

Fears about the level of consumer spending prompted department store chain Macy’s to cut its profit outlook for 2015 by 10% on November 11.

The revision sent Macy’s shares tumbling almost 20% this week.

Rival department store operator Nordstrom also cut its full-year forecast on November 12, resulting in a similar slide in its shares.

According to the United States Department of Commerce figures, US retail sales grew by only 0.1% in September 2015.

Economists had predicted a rise of 0.2%.

The flat figure was mainly attributed to a fall in fuel prices and a slowing labor market.

US car sales did rise, but core sales, which exclude those, building materials and petrol- dipped by 0.1%.

Photo Reuters

Photo Reuters

The disappointing figures make it less likely that the Federal Reserve will raise rates in October.

Slow labor growth in the US is one reason believed to have curbed some discretionary spending by Americans.

Third quarter growth in the US was also revised down to 1.7%.

The Fed is looking for 2% growth to justify increasing its benchmark rate.