US September retail sales up 0.8%… Excluding gas stations, consumption growth is ‘slight’

(New York = Yonhap News) Correspondent Lim Soo-jeong = September retail sales in the U.S. increased more than market expectations due to the surge in gasoline prices due to the U.S.-Iran war.

However, the growth rate in retail sales, excluding sales at gas stations, was only 0.2%, suggesting that rising prices had a significant impact in raising overall sales.

The U.S. Department of Commerce announced on the 15th (local time) that retail sales in September were $745 billion (about 101 trillion won), an increase of 0.8% from the previous month.

This figure exceeds the forecast compiled by Dow Jones (0.4%).

Compared to the same month last year, it increased by 6.3%.

The previously announced retail sales growth rate for August was revised upward from 1.1% to 1.3%.

The increase in overall retail sales was led by a surge in gas station sales due to rising gasoline prices.

Gas station sales in September increased 6.4% compared to the previous month. On the other hand, the growth rate of retail sales excluding gas station sales was only 0.2%.

Retail sales are calculated based on nominal amounts that do not reflect price changes. Therefore, when gasoline prices rise, gas station sales may increase even if actual purchase volume does not increase.

“The large increase in retail sales in September was almost entirely due to rising gasoline prices,” said Michael Pierce, chief U.S. economist at Oxford Economics.

Core retail sales (control group), which shows the basic consumption trend in the United States, increased by 0.1% compared to the previous month, falling below market expectations (0.3%).

Core retail sales is an indicator that excludes sales of food services, automobiles, building materials, and gas stations, and is an indicator that experts pay attention to because it is reflected in the calculation of gross domestic product (GDP).

By industry, furniture sales increased by 1.3%, electronics and home appliance sales increased by 0.6%, and online sales increased by 0.3%. Sales at restaurants and bars also increased by 1.1%, but sales of clothing and accessories remained at the same level as the previous month.

As inflation pressure increases, such as the Consumer Price Index (CPI) for September, which was announced the previous day, rising 3.7% compared to the same month last year, there are also concerns about future consumption capacity.

The monthly retail sales index is a breaking statistic that mainly counts product sales performance among total consumption, and is considered an indicator that can measure changes in consumption, which is the backbone of the U.S. economy.