Isn't it lovely how the government continues to cook statistics? They lowered their seasonal adjustment for this report.
US SEPT RETAIL SALES +0.6% EX-AUTO, SOME HURRICANE EFFECTS?
08:31 EDT 10/14 --New Overall Seasonal Adds Less Than In 1998 --Aug Sales Revised Higher; Ex-autos Stands +4.9% SAAR for 3Q --Autos -1.3%; New Unit Sales Fell --Nondurables +0.8% on Gains in Gas, Food, Drugs --Apparel, Building Materials Fall -- Hurricane Effect?
By Joseph Plocek
WASHINGTON (MktNews) - U.S. September retail sales edged up 0.1% but were a big +0.6% excluding autos in a report that may include some effects from hurricane Floyd at mid-month.
August sales were revised higher, and the underlying sales data were strong and show no let-up in buying. As an illustration, 3Q ex-auto sales stand 4.9% SAAR above 2Q, likely assuring 5% consumption in the GDP accounts.
Auto sales plunged 1.3% as new unit sales fell. Autos were up a huge 3.1% in August, so the slowing is just a reversal after the summer's end-of-model-year discounting.
Outside of autos, most categories were robust. Furniture was up 1.2%, food up 0.9%, gas up 2.5%, and general merchandise up 1.0%.
Apparel fell 0.9% and building materials dropped 0.6% in possible hurricane effects as shoppers stayed at home. Both were much higher in August, so the declines may simply be reversals from the jumps.
One reason the overall gain in retail sales was less than expected is that the Commerce Department's seasonal adjustment for September 1999 is less than in prior years. This year it added about 2.8% to overall sales, versus 3.2% in 1998.
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