Retail spending by U.S. consumers rose 1.1 percent in September, representing the best two months of sales in two years, according to Commerce Department numbers. Gains were observed in nearly all retail categories, with sales of electronics and appliances rising 4.5 percent, sales at auto dealers increasing 1.3 percent, and apparel, building materials, and garden supplies sales also climbing.
The boost in sales came shortly after the government’s report that joblessness fell 7.8 percent, its lowest level since President Barack Obama assumed office. Naroff Economic Advisors’ Joel Naroff reports that consumers “are spending at a more normal pace that is consistent with a moderately growing economy.” Another Commerce Department report estimates that companies boosted their inventories by 0.6 percent in August following a 0.8 percent gain in July.
Sales were generally up 0.5 percent in August after a 0.9 percent increase in July. IHS Global Insight’s Chris G. Christopher Jr. says the debut of the Apple iPhone 5 played a role in the September sales gain, noting that 4 million units were sold in the United States in the latter half of the month.Back To Blog