In September, retail sales in the United States experienced a robust increase of 0.7%, surpassing expectations. This growth was significantly higher than the 0.3% rise anticipated in a Bloomberg survey conducted as of 7:35 am ET. It also followed a revised 0.8% increase from the previous month.
When excluding the 1% increase in motor vehicle sales, retail sales still showed a solid uptick of 0.6%, exceeding the expected 0.2% increase. August had seen a 0.9% gain.
If we exclude both motor vehicles and the 0.9% increase in gasoline station sales, retail sales demonstrated a 0.6% increase in September following a 0.3% rise in August.
Sales at food services and drinking establishments were up by 0.9%, following a 0.4% increase in the previous month.
Several notable gains were observed in sales for health and personal care stores, as well as miscellaneous and nonstore retailers. However, sales for electronics and clothing experienced declines, as did those for building materials.
The monthly retail sales report from the US Commerce Department measures expenditures on retail products and food, which constitute a significant portion of economic growth. A separate services report is released later each month.
Investors pay close attention to the control group, which excludes food services, automobiles, gasoline, and building materials, as it directly impacts the gross domestic product (GDP) report, a key indicator of economic growth.
Generally, a robust US economy, as reflected in this data, tends to have a positive impact on stock markets while potentially having a negative effect on bond markets.