AlHijjah 21, 1435, Oct 15, 2014, SPA -- U.S. retail sales fell in September, even when excluding weakness at auto dealers and gasoline stations, the government reported Wednesday, suggesting consumer demand was not as strong as previously thought. The Commerce Department said retail sales fell 0.3 percent last month, led by drops in sales at gasoline stations and auto dealers. Economists had expected a decline in retail sales, as auto production has slowed and oil prices have fallen sharply in recent months on signs of slowing global economic growth. But what was surprising was a 0.2 percent drop in core retail sales, which exclude autos, gasoline, building materials, and food services, and correspond most closely with the consumer-spending component of gross domestic product (GDP). September sales at clothing retailers fell 1.2 percent, and sales at building materials suppliers fell 1.1 percent, but sales at electronics and appliance stores jumped 3.4 percent. Sales at auto dealerships and gasoline stations each fell 0.8 percent last month. The drop in gasoline sales reflected declining oil prices and is potentially positive for the broader economy because consumers will have more money to spend on other items in coming months. Retail sales account for one-third of consumer spending, or nearly 25 percent of total U.S. economic activity.
