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October 13, 2017

Retail sales see large monthly gain, up 1.6% in September

Total retail sales surged 1.6 percent in September – the largest monthly gain since March 2015. NAFCU Research Assistant Yun Cohen said recent weather events, such as the hurricanes, will continue to impact retail sales in the coming months.

"Looking ahead, weather-related distortions will likely continue for the next few months, but the underlying trend for consumer spending remains positive in light of a strong labor market and high consumer confidence," Cohen said in a NAFCU Macro Data Flash report.

Census Bureau data published Friday shows August's retail sales decline was revised up from -0.2 percent to -0.1 percent, while July's sales growth was revised up from 0.3 percent to 0.5 percent.

Core retail sales (excluding light vehicles and gasoline) rose 0.5 percent in September. Auto and gas sales grew 4.2 percent during the month.

"Sales at gasoline stations rose due to price increases following Hurricane Harvey," Cohen said. "Auto dealers and building supplies stores also posted large gains as a result of a rebound from postponed sales along with replacement sales. However, the storms also caused some retailers to lose customers or to close down during the month."