WASHINGTON (AP) – Americans increased their spending at auto dealers, restaurants and clothiers in September, but cheaper gasoline prices suppressed overall retail sales growth.
Retail sales rose just 0.1 percent last month, after being unchanged in August, the Commerce Department said Wednesday. Over the past 12 months, sales have climbed 2.4 percent.
Auto purchases shot up 1.8 percent last month, while spending at restaurants advanced 0.7 percent and shopping at clothiers improved 0.9 percent.
More Americans are buying cars and dining out as the U.S. economy has entered its seventh straight year of expansion. Spending increased amid a surge in hiring – 2.8 million jobs in the past year – that has since slowed in recent months. The slowdown, caused largely by global pressures, has raised questions about whether retail sales and consumer demand can sustain economic growth in the coming months.
Auto dealers enjoyed a busy September. The industry said it sold 1.44 million cars and light trucks last month, up 15.8 percent from a year ago. Buyers took advantage of low rates for auto loans and incentives over the Labor Day weekend to unload cars before the new model-year vehicles arrive at dealerships.