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US retail sales edge higher in September

Retail sales are a sign of the strength of US consumer spending
Retail sales are a sign of the strength of US consumer spending

US retail sales edged up in September, curbed by plunging petrol prices that offset surging car sales, government data released today show. 

The Commerce Department reported retail sales for September rose just 0.1% from August, half the increase expected by analysts.

Adding to the lacklustre tone of the report, the department revised August's reading to flat from a 0.2% rise originally reported. 

Retail sales are a sign of the strength of consumer spending, which drives about two thirds of the US economy's activity. 

The data, which account for less than half of all consumption, are seasonally adjusted but not adjusted for prices.

In September, the small rise in retail sales reflected a 1.7% jump in car sales, the strongest gain since May. That was offset by a 3.2% drop in petrol sales at the pump. 

Stripping out car sales, retail sales fell 0.3% in September. Excluding petrol, they rose 0.4%.

Restaurant and bar sales rose 0.7%, while US food sales dropped 0.3%. Compared with a year ago, car sales were the strongest of all the sectors in September, jumping 8.8%. 

In second place were sales in restaurants and bars, up 7.9%. At the same time, petrol sales plunged almost 20%.