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Last Update: 14-Oct-11 09:47 ET
Retail Sales Beat Expectations, Increase by Its Strongest Rate Since February
Retail sales grew by its fastest rate since February in September. Sales jumped 1.1% after increasing an upwardly revised 0.3% (from 0.0%) in August. The Briefing.com consensus expected retail sales to increase 0.6%.
The motor vehicle sector provided the bulk of the September gains. Auto sales exceeded 13 mln SAAR in September for the first time since April as sales increased from 12.12 mln SAAR in August to 13.10 mln SAAR. That translated into a 3.6% increase in motor vehicle and parts sales in September.
Outside of the motor vehicle sector, retail sales increased a steady 0.6%. That was the strongest increase since March and easily outperformed the consensus expectation of 0.3% growth.
Core sales -- which exclude the highly volatile motor vehicle dealers, building materials and supply dealers, and gasoline stations -- also posted its strongest gain since March as sales increased 0.6%.
Just about every sector had sales gains in September. The sectors that declined in September -- beverage stores, building material and supply dealers, and sporting goods and hobby stores -- each fell by less than 0.3%.
Unfortunately, sales may not remain as strong in October. A surge in back-to-school purchases -- highlighted by 1.3% and 1.1% increases in clothing and department store sales -- may see demand declines net month.
The motor vehicle sector provided the bulk of the September gains. Auto sales exceeded 13 mln SAAR in September for the first time since April as sales increased from 12.12 mln SAAR in August to 13.10 mln SAAR. That translated into a 3.6% increase in motor vehicle and parts sales in September.
Outside of the motor vehicle sector, retail sales increased a steady 0.6%. That was the strongest increase since March and easily outperformed the consensus expectation of 0.3% growth.
Core sales -- which exclude the highly volatile motor vehicle dealers, building materials and supply dealers, and gasoline stations -- also posted its strongest gain since March as sales increased 0.6%.
Just about every sector had sales gains in September. The sectors that declined in September -- beverage stores, building material and supply dealers, and sporting goods and hobby stores -- each fell by less than 0.3%.
Unfortunately, sales may not remain as strong in October. A surge in back-to-school purchases -- highlighted by 1.3% and 1.1% increases in clothing and department store sales -- may see demand declines net month.
