ARLINGTON, Va.—Retail sales continued to grow in September but at a slower-than-expected pace: total retail sales rose 0.1% during the month – the same as August – while July's growth was revised down to 0.6%.
NAFCU Research Assistant Yun Cohen said a drop in spending at restaurants and bars hindered growth.
"A rebound in vehicle sales was offset by a 1.8% decline in spending at restaurants and bars during the month," Cohen said in a NAFCU Macro Data Flash report. "The latter represents the biggest drop for the restaurant sector since December 2016 and likely reflects some disruptions from Hurricane Florence."
In addition, Cohen said the hurricane likely impacted gasoline sales, which fell despite stable prices.
Core retail sales (excluding light vehicles and gasoline) were essentially unchanged in September; auto and gas sales increased 0.3% during the month.
How Segments Compare
Results among the major retail segments were mixed in September. Nonstore retailers and furniture stores both reported sales increases of 1.1%, followed by electronics stores (+0.9%) and auto dealers (+0.8%). Sales at restaurants decreased 1.8%, followed by gas stations (-0.8%) and pharmacies (-0.3%), Cohen said.
"Looking ahead, Hurricanes Florence and Michael will likely depress retail sales somewhat in the next couple months. However, those sales declines should be recovered through rebuilding efforts in subsequent quarters," Cohen concluded.