Retail sales in the United States increased by 0.8% in September, driven largely by higher gasoline prices, according to data released by the Commerce Department. This gain followed a revised 1.3% rise in August and exceeded economists’ expectations, who had forecast a 0.3% increase for the month.
When excluding sales at gas stations, retail receipts rose a more modest 0.2% in September. Gasoline sales themselves surged 6.4%, reflecting the impact of rising pump prices. The average cost of regular gasoline climbed to $4.33 per gallon as of Thursday, amid ongoing geopolitical tensions related to renewed conflict in the Middle East.
Other sectors also experienced growth: furniture and home furnishings stores saw a 1.3% increase in sales, while electronics and appliance retailers reported a 0.6% gain. Online retail sales grew by 0.3%, and restaurants, the only services category included in the report, registered a 1.1% rise. Meanwhile, business at clothing and accessories stores remained flat compared to the previous month.
The report offers a limited view of overall consumer spending, as it does not encompass categories such as travel or hotel stays. Economists noted that the prominent rise in retail sales mainly reflects higher fuel costs rather than a broad increase in consumer purchasing. Michael Pearce, chief U.S. economist at Oxford Economics, highlighted that the jump in headline retail sales was “almost entirely due to rising gasoline prices.”
Despite elevated fuel costs, American consumers have continued to spend, indicating resilience in consumer demand amid inflationary pressures and external uncertainties.