What the long-delayed report on US retail sales says about consumer spending

Sales at U.S. retailers and restaurants increased modestly in September as resilient consumers moderated their spending after splurging over the summer.

Sales rose 0.2% in September from the previous month, the Commerce Department said Tuesday, in a report delayed more than a month because of the government shutdown. Sales jumped 0.6% in July and August and 1% in June. Numerous reports on inflation, employment, spending, and growth remain delayed and the government won’t likely be caught up until late December.

The retail sales figures, which aren’t adjusted for inflation, suggest that Americans pulled back on spending in September as many households struggled with high prices for groceries, rent, and many imported goods hit by tariffs. The retail sales report covers about one-third of consumer spending, with the rest going to services such as travel, haircuts, and entertainment. Still, higher spending should lift the economy’s growth to a solid 3% annual rate in the July-September quarter, economists forecast, after a sluggish 1.6% expansion in the first half of the year.

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