September retail sales show weakness

Washington, D.C. -- September retail sales, excluding automobiles, gasoline stations and restaurants, decreased 0.1% seasonally adjusted month-to-month yet increased 4.6% unadjusted year-over-year. According to the National Retail Federation (NRF), seasonal factors played a role, but the drop-off from August was worse than expected.



Most retail categories witnessed a decrease in sales in September, including clothing, online and non-store retailers, but the release of new smartphones lifted electronics sales. Looking at specific retail sectors, the NRF offers the following analysis:



• Building material and garden equipment and supplies dealers:

-1.1% month-to-month

+7% year-over-year



Clothing and clothing accessories stores:

•-1.2% month-to-month

• +3.3% year-over-year



Electronics and appliance stores:

• +3.4% month-to-month

• +8% year-over-year



Furniture and home furnishing stores:

• -0.8% month-to-month

• +2.5% year-over-year



General merchandise stores:

• +0.2% month-to-month

• +2.1% year-over-year



Health and personal care stores:

• +0.3% month-to-month

• +8.1% year-over-year



Online and other nonstore retailers:

• -1.1% month-to-month

• +8.2% year-over-year



Sporting goods, hobby, book & music stores:

• -0.1% month-to-month

• +2.7% year-over-year



“Retail sales were surprisingly weak in September,” NRF chief economist Jack Kleinhenz said. “Despite increasing consumer confidence, an uptick in employment, lower gas prices, and with inflation in check, consumers still slowed spending. Reconciling consumer confidence with consumer spending continues to be a challenge.”



Although an erratic stock market, geopolitical events and Ebola may contribute to continued volatility, Kleinhenz said consumer outlook for the holiday shopping season remains positive.