US Retail Sales Lose Steam as Price Pressures Persist, Delayed Inflation Data Complicates Fed Outlook
Figure 5. Retail Sales Report - September Source: US Census Bureau)
US retail spending cooled in September after months of steady gains, offering early signs that consumers may be becoming more selective in response to elevated prices and tighter household budgets. According to the US Commerce Departmentʼs Retail Sales Report, released last Tuesday, November 25, total retail sales rose just 0.2 percent, below the consensus forecast and representing a notable slowdown from the 0.6 percent gain in August. Retail sales in the closely watched “control group,ˮ which feeds directly into GDP calculations, slipped 0.1 percent, suggesting underlying consumption was softer than headline figures imply.
Figure 6. Average Hourly Earnings, Year-over-year Change Source: US Bureau of Labour Statistics)