Friday October 15, 2021

// October 15th, 2021 // Daily News

TGIF

ECONOMY

Retail sales unexpectedly gain in September as consumers keep spending

PUBLISHED FRI, OCT 15 20218:35 AM

Consumers spent at a much faster pace than expected in September, defying expectations for a pullback amid pervasive supply chain problems, the Census Bureau reported Friday.WATCH NOWVIDEO02:14September retail sales rise 0.7% despite expected decline

Retail sales for the month increased 0.7%, against the Dow Jones estimate for a decline of 0.2%. Excluding auto-related sales, the number rose 0.8%, better than the 0.5% forecast.

Compared to a year ago, sales were up 13.9% on the headline number and 15.6% ex-autos.

The increase came during a month when the government ended the enhanced benefits it had been providing during the Covid-19 pandemic and against forecasts that growth would slow in the third quarter due to the delta spread and a perceived pullback in consumer activity.

But with coronavirus cases continuing to drop, spending accelerated.

“Students heading back to school and workers returning to the office are likely the catalysts for the increased retail sales,” said Natalie Kotylar, national leader of BDO’s retail and consumer products practice. “People who are back to working in a downtown office may be taking more shopping trips on their lunch break or after work. With school back in session and many teens vaccinated, parents may also be more comfortable allowing their teens to take shopping trips to the mall.”

Sporting goods, music and book stores led the way with a 3.7% increase. General merchandise increased 2% while miscellaneous retailers rose 1.8%. As gas prices pushed higher, spending at fuel stations jumped 1.8%, for a 38.2% surge over the past year.

Food and beverage spending increased 0.7%, though restaurants and bars saw a gain of just 0.3%, a sign that fears over the virus may have kept some people at home. Food and drinking establishment spending is up 29.5% over the past year.