Retail sales gained 1.6% in September; Ex-autos rise 1.0%

WASHINGTON -- The value of retail sales rose 1.6% in September and were up 1.0% excluding motor vehicle sales following upward revisions in July and August, data released by the Commerce Department Friday morning shows.

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September motor vehicle posted a 3.6% gain in the month, bouncing off a 2.1% drop in the previous month. Excluding motor vehicles, gasoline, and building materials, "core" retail sales were up 0.4%.

And for good measure, excluding food services as well as those three measures, retail sales were still up 0.4%.

Motor vehicles, gas, and building materials accounted for much of the strength in report, as would be expected as rebuilding and replacement of damaged homes and vehicles began. The Commerce Department provided no comment on the impact of the hurricanes in the report.

The retail sales data suggest that third quarter consumption was stronger the second quarter average. Incorporating the September surge and the upward revisions to July and August, third quarter retail sales are up 3.8% at an annual rate from the second quarter average.

At the same time, sales excluding motor vehicles were up 4.1% from the second quarter, while sales excluding motor vehicles, gas and building materials were up 2.6% and sales also excluding food services was up 2.6%.

Building materials sales rose 2.1% in September following a 0.6% gain in August. Gasoline store sales, meanwhile, surged 5.8% in September following a 4.1% rise in August and food services and drinking places sales were up 0.8% after a 0.2% August gain. Sales were mixed for the other categories, but a 1.0% rise in grocery store sales stood out.


Market News International is a real-time global news service for fixed-income and foreign exchange market professionals. See www.marketnews.com.
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