Weak Retail Sales, Stocks Down 3%

123jump.com Staff
15 Oct, 2008
New York City

September retail sales declined from August and from the previous year as consumers pull back. Auto, furniture, restaurant and apparel retail sales were down more than expected in the month. Sales at convenience stores and healthcare outlets were up. Crude oil dropped to $75 a barrel.

[R]11:00AM New York – U.S. retail sales dropped in September as consumers pull back and look for bargains.[/R]

U.S. stocks dropped nearly 2% in the morning after retail sales fell and crude oil futures prices declined.

September month retail sales dropped 1.2% after declining 0.4% in August. The sales excluding autos dropped 0.6% in the month after falling 0.9% in the previous month according to the latest data from the Commerce Department. Tight lending conditions, falling consumer confidence and rising energy costs have sapped consumer demand.

Retail sales were down 1.4% from a year ago and for the three months ending in September of this year sales were up 0.8% from a year ago.

Consumers are increasingly focused on the job security and holding on to their homes than on buying a new car or the latest electronic gadget. Auto sales in September were at a seasonally adjusted 12.5 million rate - a 16-year low - are likely to decline below 12 million in October.

In the month sales at restaurants and bars dropped 0.5% and furniture sales dropped 2.3%. There were very few gainers in the month. Sales at service stations rose 0.1% and health, personal care and drug stores increased 0.4%. Sales at convenience stores rose 17.8% and at food and beverages stores rose up 5.1%.

In addition, producer price index dropped 0.4% in the month according to the Labor Department.

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