Retail sales show solid increase in September
foxbusiness.comNorthEnd Private Wealth CIO Alex McGrath discusses his expectations for the upcoming Federal Reserve meeting and the 3Q earnings season.
Retail sales increased more than expected in September as the U.S. economy continued to show signs of growth in the third quarter.
The Commerce Department's Census Bureau said that retail sales rose 0.4% last month after an unrevised gain of 0.1% in August. Economists polled by LSEG had forecast that retail sales would rise 0.3%. Estimates ranged from no change to an increase of 0.8%.
Retail sales excluding automobiles, gasoline, building materials and food services rose 0.5% in September after an unrevised rise of 0.3% in August. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product (GDP). Growth estimates for the third quarter are around a 3.2% annualized rate. The economy grew at a 3% pace in the second quarter.
Signs of the economy's continued resilience are likely to reinforce the probability of the Federal Reserve opting for a smaller 25-basis-point cut to the benchmark federal funds rate when it meets early next month.
AMERICAN CONSUMERS SEE DEBT DELINQUENCY RISK RISING, HIGHER LONG-TERM INFLATION: NY FED
Retail sales came in stronger than expected in September. ( Christopher Dilts/Bloomberg via Getty Images / Getty Images)
«Strong consumer spending in September suggests economic growth in the previous quarter was solidly above trend,» said Jeffrey Roach, chief economist for LPL Financial. «Looking ahead, investors need to monitor any signs that the unemployed are finding it more difficult to earn a paycheck. Our baseline remains that the Fed will likely cut a quarter of a percent in both November and
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