Shoppers eased spending in September, shutdown-delayed report shows
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American consumers eased spending in September: Retail sales rose 0.2% that month, the Commerce Department said on Tuesday in a data report delayed by the government shutdown.
Why it matters: The first snapshot of consumer spending since the government reopened suggests the consumer engine of the economy is on rocky footing.
By the numbers: The September results mark a slower pace of spending from the prior month, when sales rose by 0.6%.
Zoom in: Spending at gasoline stations rose by 2% alone in September, likely a result of higher pump prices. The data is not adjusted for inflation.
- In fact, stripping out spending at gasoline stations, retail sales were flat. By the same measure, retail sales rose by 0.6% in August.
- It was among the categories to see a notable acceleration of spending, including a catch-all category for retailers (+2.9%), furniture stores (+0.6%), and restaurants (+0.7%).
- Most other shops saw a muted increase in spending; building supply shops, as well as food and beverage stores, rose by 0.2%.
- Other categories reported monthly declines, including hobby shops (-2.5%), e-commerce (-0.7%), and electronic stores (-0.5%).
Of note: A separate report released on Tuesday, also delayed by the shutdown, showed — at least in aggregate — benign price increases among wholesalers in September.
- The Producer Price Index rose 0.3%, after falling by 0.1% in August and soaring by 0.8% in July, the Bureau of Labor Statistics said.
- September's increase stemmed from a jump in goods prices, as President Trump's tariffs continue to work their way through the economy.
- Goods prices rose by almost 1 percentage point in September, the largest increase since February 2024.
The bottom line: The retail sales data is stale, but it points to consumers dialing back spending ahead of the all-important holiday season.
Editor's note: This story has been updated with PPI data.
