US retail sales cool as consumers battle higher prices
WASHINGTON, United States (AFP) — United States retail sales grew at a slower pace than anticipated in September, government data showed Tuesday, as higher prices added to affordability concerns while firms grappled with an uptick in business costs.
Overall retail sales picked up by 0.2 percent on a month-on-month basis, said the Commerce Department, slightly below analyst expectations and cooling from August’s 0.6 percent increase.
A separate report by the Labor Department showed that producer prices rose in line with expectations at 0.3 percent in September.
But this rise was driven by a 0.9-percent jump in goods costs, underscoring the steeper costs that businesses have been facing.
As President Donald Trump’s tariffs flow through the economy, all eyes are on how consumers — a key driver of the world’s biggest economy — respond to price pressures.
Already, some companies have reported seeing higher costs due to Trump’s new duties. The US leader recently widened tariff exemptions to cover various agriculture products as costs of living weigh on American voters.
Both reports released Tuesday were delayed as a record-long government shutdown between October and mid-November halted the publications of various economic data, ranging from inflation to jobs numbers.
The 43-day stoppage hit the collection of consumer inflation and employment data for the month of October in particular, resulting in the cancellation of full reports on both fronts. Instead, available numbers will be released with November’s figures.
On Tuesday, Commerce Department figures showed that retail sales in September were up 4.3 percent from a year ago.
Among segments, sales at motor vehicles and parts dealers fell in September, while those at food and drinks stores eased.
Sales at clothing, hobby and electronics stores all turned negative as well.
In the producer price index report, goods costs rose 0.9 percent in September on the back of energy and food prices.