In September 2024, U.S. retail sales experienced a 0.4% increase month-over-month, surpassing both the 0.1% gain in August and market expectations of a 0.3% rise. This marks a positive boost in consumer spending, particularly as certain sectors showed stronger-than-expected growth.

Key Growth Sectors

The largest sales increase came from miscellaneous store retailers, which saw a robust 4% rise. This was followed by clothing stores, up 1.5%, and health and personal care stores, which recorded a 1.1% growth. Food and beverage stores also experienced a 1% rise, reflecting consistent demand for essential goods.

Other sectors that posted gains included food services and drinking places and general merchandise stores, both of which grew by 1% and 0.5%, respectively. Nonstore retailers, such as e-commerce outlets, saw a modest 0.4% increase in sales, signaling steady online shopping activity.

Sectors in Decline

Despite overall growth, some sectors faced declines in September. Electronics and appliance stores reported a sharp 3.3% drop, continuing a trend of weakness in demand for durable goods. Similarly, gasoline stations saw a 1.6% decrease in sales due to lower fuel prices, while furniture stores reported a 1.4% decline. Auto dealer sales remained flat, reflecting no significant movement in vehicle purchases during the month.

Core Retail Sales

Excluding volatile sectors such as food services, auto dealers, building materials, and gasoline stations, core retail sales—a key indicator for GDP calculations—rose by a solid 0.7%, the highest increase in three months. This figure indicates underlying strength in consumer demand, contributing positively to the broader economic outlook.

Conclusion

The stronger-than-expected growth in U.S. retail sales for September 2024 points to resilient consumer spending despite economic challenges. With key sectors like clothing and health showing gains, and core retail sales posting the largest jump in months, the data reflects ongoing confidence in the retail market heading into the final quarter of the year.