Retail Sales Saw Modest September Gains

Last month U.S. retail sales experienced a slight increase caused by a rebound in automobile sales that was offset by the largest drop in restaurant and bar spending in almost two years.

Overall, retail sales were up 0.1 percent, with similar gains posted in August. The Commerce Department viewed September’s performance as a sign of robust consumer spending, Reuters reports, despite weak imports and a sluggish housing market. Compared to a year ago, September retail sales rose 4.7 percent, but economists expected the month to reach a 0.6 percent increase.

The increase in consumer spending is being driven by the low unemployment rate, which is at 3.7 percent. The Trump administration’s $1.5 trillion tax cut is also being credited for higher consumption, though economists say the stimulus triggered by the cuts is expected to diminish in the fourth quarter.