Oct 17, 2024 - Business

Consumers ramped up spending in September

Courtenay Brown

Shoppers at a Barnes and Noble store — Shoppers in a Barnes & Noble store in Glendale, Calif. Photo: Mario Tama/Getty Images

Retail sales rose last month by 0.4% as spending at clothing shops, restaurants and grocery stores jumped, the Commerce Department said on Thursday.

Why it matters: Consumer spending is the bedrock of the U.S. economy. The data suggests that foundation is solid, a good indicator the nation's economic activity is holding up.

By the numbers: The latest retail sales figure comes after an increase of 0.1% the prior month.

Most retail categories saw spending increase in September, including clothing shops (+1.5%), restaurants and bars (+1%), and other food shops (+1%).
A catch-all category for other retailers—pet stores, convenience stores and more—saw the biggest spending surge: up 4% from August.

Between the lines: Spending at gas stations fell 1.6%, dragging down the overall sales figure. The drop is likely a result of cheaper gas prices last month. Spending at car and auto shops was flat.

Excluding those categories, spending looked stronger with an increase of 0.7% last month.
There was a pullback in spending at furniture shops (-1.4%) and electronics stores (-3.3%).

The bottom line: Strong retail sales is the latest economic indicator that shows the economy is still chugging along.

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Consumers ramped up spending in September

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