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U.S. NEWS A7
Monday 19 October 2015

US Financial Front:

Car buying fuels bump in September retail sales

Day weekend to unload of lower energy pric- that consumers spent 80
cars before the new mod- es. Sales at service stations cents of every dollar saved,
el-year vehicles arrive at have dived 19.7 percent with the largest shares go-
dealerships. from a year ago as drivers ing to restaurants and gro-
People are also splurging no longer need to spend as cery stores.
more frequently at restau- much on gas. Purchases at building sup-
rants and bars. Yet over- Prices at the pump have ply stores also fell for the
all retail sales have been fallen nearly 28 percent second straight month in
muted for much of this over the past year to $2.31 September, potentially
year. a gallon, according to suggesting that hous-
Spending at gasoline sta- AAA. ing sales might retreat
tions plunged 3.2 percent Analysis by the JPMorgan from the summer’s fran-
in September because Chase Institute suggests tic sales pace.q

Boston College students Alli Urbon, left, and Eddie Dols shop at
the CityTarget store in Boston. Americans spent cautiously at re-
tailers in September, with stepped-up spending for cars, clothes
and restaurants tempered by sales declines for gasoline, build-
ing materials and online outlets.

(AP Photo/Michael Dwyer)

JOSH BOAK the coming months.
AP Economics Writer The September re-
WASHINGTON (AP) — tail sales report hinted at
Americans spent cau- lukewarm demand, with
tiously at retailers in Sep- spending unchanged for
tember, with stepped-up the month once autos and
spending for cars, clothes gasoline sales are exclud-
and restaurants tempered ed.
by sales declines for gaso- “The latest report on U.S. re-
line, building materials and tail sales activity was down-
online outlets. beat,” said Jennifer Lee, a
Retail sales rose just 0.1 per- senior economist at BMO
cent last month after being Capital Markets. “Consum-
unchanged in August, the ers continued to eat out,
Commerce Department but electronics failed to
said Wednesday. Over the get a boost, even with the
past 12 months, sales have launch of the new iPhone
climbed 2.4 percent. 6s and 6s Plus.”
Auto purchases shot up But Ian Shepherdson, chief
1.8 percent in September, economist at Pantheon
while spending rose 0.7 Macroeconomics, noted
percent at restaurants and that imported electronics
0.9 percent at clothiers. and clothing have also be-
More Americans are buy- come cheaper because of
ing cars and dining out as the stronger dollar, caus-
the U.S. economy has en- ing sales volume to look
tered its seventh straight artificially lower despite
year of expansion. Spend- a continued appetite for
ing increased amid a surge these goods.
in hiring — 2.8 million jobs Auto dealers enjoyed a
in the past year — that has busy September. The in-
slowed in recent months. dustry said it sold 1.44 mil-
The slowdown, caused lion cars and light trucks
largely by global pressures, last month, up 15.8 percent
has raised questions about from a year ago. Buyers
whetherretail sales and took advantage of low
consumer demand can rates for auto loans and
sustain economic growth in incentives over the Labor