Retail Sales in U.S. Climb Excluding Auto Dealers

Sales at most types of retailers, from electronics stores to restaurants, climbed in September, indicating households were sustaining the U.S. economic expansion before the government shutdown shook confidence.

Purchases excluding auto dealers rose 0.4 percent following a 0.1 percent gain the prior month, matching the median forecast of economists surveyed by Bloomberg, Commerce Department figures showed today in Washington. Total sales dropped 0.1 percent because car purchases over the Labor Day holiday weekend were counted in the figures for August.

Americans snapped up the newest mobile phones and video games in October, buoyed by low borrowing costs and rising household wealth backed by improving home and stock prices. Another report today showed consumer confidence sank this month by the most in two years on concern the world’s largest economy will be set back by the fiscal gridlock in Washington.

The Conference Board’s consumer confidence index slumped to 71.2 in October, a six-month low and weaker than the median forecast of economists surveyed by Bloomberg, the New York-based private research group’s data showed today. The 9-point drop from September’s revised 80.2 was the biggest slump since August 2011, when a prior political standoff over the budget prompted Standard & Poor’s to cut the country’s debt rating.

(Source: Bloomberg)