U.S. retail sales advanced more than expected in September, marking six consecutive months of gains and highlighting the strong resilience of consumers despite surging inflation and elevated interest rates.
Often considered a gauge of consumer health, the retail sales data released on Tuesday by the U.S. Census Bureau showed a robust 0.7% monthly uptick, down from the upwardly revised 0.8% surge in August and well above the anticipated 0.3%.
On an annual basis, total retail sales are up by 3.8%, up from the 2.5% recorded in August, marking the highest year-over-year advance since February 2023.
Retail sales, excluding the automotive sector, rose 0.6%, down from the upwardly revised 0.9% growth seen in the previous month but beating the projected 0.2%. When also excluding gasoline stations, retail sales rose 0.6%, up from the 0.3% seen in August.
It's important to note that all these figures are not adjusted for inflation, which experienced a 0.4% month-on-month increase in September.