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U.S. Retail Sales Cool as Confidence Slides

New readings point to price pressures curbing purchasing power.

Overview

  • Retail sales rose 0.2% in September after a 0.6% gain in August, undershooting expectations as shoppers pulled back on autos, clothing, electronics, and online purchases.
  • Core retail sales excluding autos, gasoline, building materials, and food services fell 0.1% in September, signaling softer goods demand.
  • The Conference Board’s consumer confidence index dropped to 88.7 in November, the lowest since April, with fewer households planning big-ticket purchases.
  • The unemployment rate has climbed to 4.4%, adding to concerns that are informing Federal Reserve deliberations ahead of the December meeting.
  • Producer prices rose 0.3% in September on higher energy and food costs, while service-station receipts increased 2.0%, indicating price-driven support for nominal sales.