Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / News/  US retail sales slide 1.2% in September
BackBack

US retail sales slide 1.2% in September

US retail sales slide 1.2% in September

Premium

By AFP

Washington: US retail sales slumped 1.2% in September as consumer pulled back in the face of a financial market storm and tight credit, government data showed Wednesday.

The drop in sales was the steepest since August 2005 and weaker than market expectations for a 0.7% drop.

A major factor was weak auto sales, which plunged 8.4% year-over-year and 3.75 % in the month.

But even excluding autos, retail sales were down a hefty 0.6% in September, the Commerce Department report showed.

“This is a very weak quarter and certainly one headed for negative (economic) growth," said Robert Brusca at FAO Economics.

The US economy grew at an estimated 2.8% pace in the second quarter but analysts say the figure was skewed by a one-time government stimulus that boosted spending, which accounts for about two-thirds of US economic activity, as well as strong exports.

Many analysts say the economy is headed for a downturn as a credit crisis stemming from a housing market meltdown impacts the rest of the economy.

“The consumer is retrenching," analysts at Briefing.com said in a note on the retail report.

“The drops were not a result of weaker gasoline sales, as that component rose fractionally. These data are not hard to analyze. They are poor from an economic standpoint. Of greatest concern is that the extremely negative sentiment surrounding the ‘economic crisis´ and declines in stock values will lead to further consumer caution in the months ahead."

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 15 Oct 2008, 06:35 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App