U.S. Retail Sales Growth Slows in September After Strong Gains

According to BlockBeats, U.S. retail sales in September grew at a slower pace than expected, following a period of robust increases. Data released on Tuesday indicated a 0.2% month-over-month rise in retail sales, compared to an unrevised 0.6% increase in August. Economists had anticipated a 0.4% growth for the month. The acceleration in sales in previous months was partly driven by consumers rushing to purchase electric vehicles before the expiration of tax credits at the end of September. Despite the slowdown, economists do not expect it to alter their forecasts for a rebound in consumer spending in the third quarter. Retail sales, excluding automobiles, gasoline, building materials, and food services, fell by 0.1% in September, while August's figures were revised to a 0.6% increase. These core retail sales figures closely align with the consumer spending component of GDP. However, current consumption is primarily driven by high-income households, as many middle- and low-income consumers face rising costs, partly due to import tariffs, contributing to what economists describe as a K-shaped economy.