US Retail Sales Outperform in September Posting a 1.9% Increase
US retail sales surged in September and rose for the fifth consecutive month as the economy continues to recover, according to MarketWatch.
Economists polled by MarketWatch forecasted a 1.2 percent increase in retail sales for September, but this morning the government reported that sales increased 1.9 percent.
Auto sales accounted for a majority of the increase, rising 3.6 percent in September. Autosales account for 20 percent of all retail spending. Without the auto segment retail sales were still up 1.5 percent.
However, economists are worried that a severe downturn could be in the near future. With jobless claims numbers staying high, the constant spread of the coronavirus, and Congress failing to pass a new stimulus package the economy might not be as healthy as it seems.
Sales rose in every category except or electronic and appliance stores, which fell 1.6 percent in September. Clothing sales increased 11 percent due to the start of school and cooler weather. The strong retail numbers have contributed to the moderate growth in the economy.
For the economy to continue down this recovery phase, the federal government will need to pass another stimulus package to prevent the recent progress from stalling.