Consumers spent at a much faster pace than expected in September, with retail sales up 1.9%, indicating that the largest driver of the US economy remains healthy.
Economists surveyed by Dow Jones expected sales to grow 0.7% from 0.6% in August.
With the exception of cars, the increase was 1.5%, which was also better than the estimate of 0.4%.
Clothing and accessories increased by 11%, while sporting goods, music and books increased by 5.7%. Electronics and home appliances were the only major industry to suffer negative effects, falling 1.6% from August.
Markets reacted positively to the news, futures on the Dow meant a profit at the opening of about 126 points.
However, economists expect this figure to return when growth is announced in the third quarter at the end of the month, and Atlanta’s GDP relative to GDP indicates growth of 35.2%. That would be more than twice the quarterly growth, at least until 1947.
In addition, there is growing concern that there may be a marked slowdown in the fourth quarter as virus cases continue to rise. The holiday shopping season will be key to the momentum the United States sees as the calendar turns into 2021.
Falling electronics sales can be seen as a harbinger of a slowdown. The total amount for September 2020 also represented a decline of 6.4% compared to the rate a year ago.
Vehicle sales were significant, increasing by 3.6% for the month and by 10.9% since September 2019. This came after the prices of used cars and trucks rose by 6.9%, the largest monthly increase since February 1969.
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