U.S. retail sales fell in September for the first time in six months

New York – Retail sales in the U.S. fell in September for the first time in seven months as most stores posted lower receipts, signalling that a widely expected slowdown in consumer spending might be underway.

The U.S. Government reported Thursday a 0.3 percent fall in retail sales last month, which ended a streak of six straight strong gains that helped to fuel economic growth in the middle of the year. This decline –inclusive of purchases at stores, at restaurants and online—put an end to six months of consecutive gains. Online sales’ decline was the first this year.

Economists Gregory Daco and Lydia Boussour of Oxford Economics told investors in a note echoed by ‘MarketWatch’ that “With employment growth cooling and private sector confidence increasingly susceptible to policy uncertainty, we anticipate a further slowdown in consumer outlays heading into 2020.”

“Consumption is poised to cool along with slower job gains ahead, and the Fed will be looking closely for any signs of trade uncertainty contaminating the most important segment of the U.S. economy,” pointed out Katherine Judge of CIBC Capital Markets. “However, lower interest rates and ample savings to draw from should allow household spending to remain absolutely healthy for now.”