After reporting a modest drop in U.S. retail sales in the previous month, the Commerce Department released a report on Friday showing that sales rebounded in line with economist estimates in the month of September.
The Commerce Department said retail sales climbed by 0.6 percent in September after edging down by a revised 0.2 percent in August.
Economists had expected sales to rise by 0.6 percent compared to the 0.3 percent drop originally reported for the previous month.
The increase in retail sales was partly due to a rebound in sales by motor vehicle and parts dealers, which surged up by 1.1 percent in August after slipping by 0.3 percent in August.
However, excluding the jump in auto sales, retail sales still rose by 0.5 percent in September after dipping by 0.2 percent in August. The increase in ex-auto sales also matched estimates.
Gas station sales showed a significant rebound during the month, spiking by 2.4 percent in September after slumping by 1.4 percent in August.
Sales by miscellaneous store retailers, sporting goods, hobby, book and music stores, building material and supplies dealers, and furniture and home furnishings stores also saw notable growth.
Meanwhile, the report said closely watched core retail sales, which exclude autos, gasoline, building materials and food service, edged up by a smaller than expected 0.1 percent.
Jay Morelock, an economist at FTN Financial, said, "The control group represents the components of retail sales that feed directly into GDP, so this was not the quarter-ending pop needed to get the third quarter back to a solid recovery path."
The Commerce Department noted that total retail sales in September were up by 2.7 percent compared to the same month a year ago, reflecting an acceleration from the 2.1 percent increase in July.
by RTT Staff Writer
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