US monthly retail sales rose by 0.4% in September

The U.S. Census Bureau reported a 0.4% increase in retail sales in September. According to the preliminary report, total monthly retail sales were $714.4 billion.

The increase beat what economists polled by the Wall Street Journal had forecast (of 0.3% growth).

Retail spending saw growth in several categories, led by miscellaneous store retailers, which posted a 4% increase. Clothing stores followed with a 1.5% rise, and bars and restaurants saw a 1% increase.

Certain sectors faced setbacks though, with gas stations down 1.6% as fuel prices fell. Electronics and appliance stores saw a drop of 3.3%, while furniture and home furnishings businesses slipped by 1.4%.

What do these results mean for the economy?

Consumer spending is a big part of the U.S. economy’s gross domestic product (GDP). According to U.S. Bureau of Economic Analysis data, consumer spending accounts for over two-thirds of the nation’s GDP.

So, if retail sales are increasing, then it’s a good indicator of resilient consumer spending and a robust economy. 

U.S. Retail Sales Data – September 2024*:

*Numbers are adjusted for seasonal factors.

Data source: U.S. Census Bureau – ADVANCE MONTHLY SALES FOR RETAIL AND FOOD SERVICES, SEPTEMBER 2024 [PDF]