Sales at US retailers fell in September, hurt by a slump in motor vehicle purchases as government-sponsored incentives ended, but the decline was less than expected, a government report showed on Wednesday.
Stripping out the volatile autos component, sales increased for a second straight month in September, cementing the view that consumer spending recovered and the economy started growing in the third quarter after the worst US recession since the 1930s.
The Commerce Department said total retail sales fell 1.5 per cent in September, the biggest decline since December, after surging by a revised 2.2 per cent in August. Sales in August were previously reported to have increased by 2.7 per cent.
Analysts polled by Reuters had forecast headline retail sales falling 2.1 per cent in September. Sales in September were dragged down by a drop in vehicle purchases following the end of the government's popular "cash for clunkers" program in August.
That plan gave consumers cash to trade in aging gas-guzzlers for new, more fuel efficient models. Motor vehicle and parts sales tumbled 10.4 per cent in September, the largest fall since August 2005, after rising 7.8 per cent the prior month.
Excluding motor vehicles and parts, retail sale rose by a bigger-than-expected 0.5 per cent in September after increasing 1 per cent in August. Economists had expected a 0.2 per cent increase. Sales were probably supported by back-to-school buying, as well as the best furniture and home furnishings sales since January 2007.
Gasoline station sales rose 1.1 per cent in September after rising 4.7 per cent in August. Excluding gasoline and motor vehicles, retail sales rose 0.4 per cent versus a 0.6 per cent gain in August.
Sales of building materials dipped 0.2 per cent in September after a 1.2 per cent drop the prior month.