- Angela Gonzalez-Rodriguez
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New York – Retail sales in the U.S. fell in September for the first time
in seven months as most stores posted lower receipts, signalling that a
widely expected slowdown in consumer spending might be underway.
The U.S. Government reported Thursday a 0.3 percent fall in retail sales
last month, which ended a streak of six straight strong gains that helped
to fuel economic growth in the middle of the year. This decline –inclusive
of purchases at stores, at restaurants and online—put an end to six months
of consecutive gains. Online sales’ decline was the first this year.
Economists Gregory Daco and Lydia Boussour of Oxford Economics told
investors in a note echoed by ‘MarketWatch’ that “With employment growth
cooling and private sector confidence increasingly susceptible to policy
uncertainty, we anticipate a further slowdown in consumer outlays heading
into 2020.”
“Consumption is poised to cool along with slower job gains ahead, and
the Fed will be looking closely for any signs of trade uncertainty
contaminating the most important segment of the U.S. economy,” pointed out
Katherine Judge of CIBC Capital Markets. “However, lower interest rates and
ample savings to draw from should allow household spending to remain
absolutely healthy for now.”
