US retail sales fell unexpectedly in September on a record drop in petrol sales, but were up when petrol sales were stripped out, the latest government report shows.
Retail sales fell 0.4% in the month, the Commerce Department said. Analysts had been expecting a 0.2% rise.
A big drop in petrol prices in September was reflected in a 9.3% tumble in sales at petrol stations, the largest decline on record, the US government said. Excluding petrol sales, retail sales rose 0.6%.
Car and parts sales were unchanged in September. US consumers pared their spending by 0.5% in September excluding automotive purchases, the report said. Analysts were expecting flat sales when car and parts were stripped out.
Petrol prices fell from about $3 in early August to $2.50 early September, economists from FTN Financial said this week.
Many of August's sales increases were also revised lower today. Overall retail sales rose 0.1% instead of the previously reported 0.2% rise. Car sales were revised to a drop of 0.4% from a 0.4% gain.
Meanwhile, US consumer sentiment rose faster than expected in October. The preliminary index from the University of Michigan moved up to 92.3 from 85.4 in September. Economists had expected a figure of 86.5.
