US retail sales stay unchanged as consumers' purchasing power wanes

US Commerce Department data had unveiled that US retail sales remained unchanged in September

by Sourav D
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US retail sales stay unchanged as consumers' purchasing power wanes

On Friday, US Commerce Department data had unveiled that US retail sales remained unchanged in September, as US households trimmed their spending on big-ticket items like of motor vehicles alongside electronics in a bid to grapple with an intransigent pick-up in inflation indicators.

In the matter of the fact, latest US retail sales data came against the backdrop of a steep shoot-up in inflation indicators, as US Labour Department data had unveiled yesterday that US Consumers prices Index (CPI) jumped as much as 0.4 per cent last month compared to a month earlier, while over the past twelve months through September, Consumer Spending jumped to 8.2 per cent compared to a reading of 8.1 per cent a month earlier, illustrating that the US Fed’s gamble on an aggressive rate-hike cycle might not act as anticipated amid a lingering strain on supply chains.

Nonetheless, the US consumers appeared to be vying to vent out a way avert a sharp roll-over in expenses, as households’ savings faltered and wages continued to rise which in effect have been comfortably contributing to a blistering inflation-surge.

US retails sales stay unchanged

According to data from US Commerce Department, retail sales remained unchanged last month, while August data was revised upwards by 0.4 per cent. On a year-on-year basis, retail sales soared by 8.2 per cent last month.

Meanwhile, addressing that the US Consumers’ purchasing powers are depreciating, a senior economist at Wells Fargo in Charlotte, North Carolina, Tim Quinlan said, “Consumer staying power may be waning, but it's showing few signs of breaking.

Overall spending will continue to moderate as inflation persists and tighter monetary policy begins to weigh more meaningfully on consumption”

Commerce Department
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