The Journal Gazette
 
 
Saturday, October 17, 2020 1:00 am

Retail sales up for 5th month

1.9% rise more than expected

Associated Press

NEW YORK – Retail sales rose strongly in September, the fifth consecutive month of growth, as Americans spent more on clothing, cars and sporting goods.

The U.S. Commerce Department said Friday that retail sales jumped 1.9% last month. That's much better than the 0.8% rise economists expected. And it's up from an increase of 0.6% in August.

Retail sales have been recovering since plunging in the spring as stores and malls were ordered closed to help prevent the spread of the coronavirus.

Much of last month's growth came from clothing stores, where sales rose 11%. At auto dealerships and auto part shops, sales were up 3.6%. And those looking to go camping or buy exercise equipment for their homes sent sales at sporting goods stores up 5.7%.

Consumer spending makes up two-thirds of all U.S. economic activity, and is watched closely to gauge the country's economic health.

Friday's retail sales report covers only about a third of overall consumer spending. Services such as haircuts and hotel stays are not included in the report. All of those types of businesses have been badly hurt by the pandemic.

Industrial production

U.S. industrial production fell 0.6% in September, the weakest showing since spring and a sign the economy's recovery from the pandemic recession may be faltering just as confirmed viral infections are resurging in much of the country.

The Federal Reserve reported Friday that industrial production suffered its first decline since a 12.7% drop in April during the spring lockdowns of businesses that paralyzed the economy.

The key category that reflects manufacturing output fell 0.3%.

At the same time, mining output, which includes oil and gas exploration, fell 5.6%. Production at utilities rose 1.7%.

Last month's reading on industrial production followed four straight increases that began in May after sharp declines in March and April. Industrial production has recovered more than half of its spring declines, but remains 7.1% below its pre-pandemic level in February.


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