After delays caused by the shutdown, the government released September retail sales data, showing a modest 0.2% increase – below expectations and well under August’s stronger 0.6% gain.
The “control group,” which excludes autos, gas, building materials and food services, slipped 0.1%. This marked its first decline in five months and matters because it feeds directly into GDP calculations.
What’s the bottom line? September’s softer spending suggests consumers may have started to cool heading into the fourth quarter. The delayed October and November reports will be key to understanding whether this slowdown has become a trend.