Consumer spending was flat in September and below expectations as inflation takes toll
Source: CNBC
ECONOMY
Consumer spending was flat in September and below expectations as inflation takes toll
PUBLISHED FRI, OCT 14 2022 9:05 AM EDT
Jeff Cox
@JEFF.COX.7528 https://facebook.com/jeff.cox.7528
@JEFFCOXCNBCCOM https://twitter.com/JeffCoxCNBCcom
KEY POINTS
-- Retail and food services sales in total were little changed in September against the estimate for a 0.3% gain.
-- Excluding autos, sales rose 0.1%, vs. the estimate for spending to be unchanged.
-- The numbers are not adjusted for inflation, indicating that consumer spending slowed.
Consumer spending was flat in September as prices moved sharply higher and the Federal Reserve implemented higher interest rates to slow the economy, according to government figures released Thursday. ... Retail and food services sales were little changed for the month after rising 0.4% in August, according to the advance estimate from the Commerce Department. That was below the Dow Jones estimate for a 0.3% gain. Excluding autos, sales rose 0.1%, against an estimate for no change. (1)
Considering that the retail sales numbers are not adjusted for inflation, the report shows that real spending across the range of sectors the report covers retreated for the month. ... A Bureau of Labor Statistics report Thursday indicated that consumer prices rose 0.4% including all goods and services, and 0.6% when excluding food and energy. ... Miscellaneous store retailers saw a decline of 2.5% for the month, while gasoline stations were off 1.4% as energy prices declined. (2)
A slew of other sectors also posted drops, including sporting goods, hobby, books and music stores as well as furniture and home furnishing stores, both of which posted a -0.7% drop, while electronics and appliances were off 0.8% and motor vehicle and parts dealers fell 0.4%. ... General merchandise store sales rose 0.7%. Gainers also included online stores, bars and restaurants, clothing retailers and health and personal care stores, all of which saw 0.5% increases.
While the gains for the month were muted, retail sales rose 8.2% from a year ago, matching the rise in the consumer price index. Shoppers remain generally flush with cash though there are indications of late that they are dipping into savings to make ends meet. {snip} A separate report Thursday showed that import prices fell 1.2% in September, slightly more than the 1.1% estimate. Exports declined 0.8%. (3)
(1) https://www.census.gov/retail/marts/www/marts_current.pdf
(2) https://www.cnbc.com/2022/10/13/consumer-price-index-september-2022-.html
(3) https://www.bls.gov/news.release/ximpim.nr0.htm
Read more: https://www.census.gov/retail/marts/www/marts_current.pdf
Hat tip, The Wall Street Journal.
ECONOMYU.S. ECONOMY
Americans Spend Less on Gas, More on Food as Inflation Varied Across Items
Retail spending declined in September in areas seeing discounts and climbed in many of those with rising prices
https://www.wsj.com/articles/americans-spend-less-on-gas-more-on-food-as-inflation-varied-across-items-11665768796
By Harriet Torry
https://twitter.com/HarrietTorry
harriet.torry@wsj.com
Oct. 14, 2022 1:33 pm ET
Consumers’ retail spending shifted in September as they adjusted to changing costs amid strong inflation and rising interest rates.
They spent more on increasingly expensive essentials such as food and less on items with falling prices like gasoline and furniture, according to two government data reports this week.
{paywall}
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https://www.census.gov/retail/marts/www/marts_current.pdf
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