US consumers rose their spending on retail goods at more than expected rate in September, with a hopeful sign of slothful economy. The sales went up by 1.1% over the last month. The consumer spending was more on autos, clothing and furniture. It was the largest gain in seven months as per the US Department of Commerce. Auto sales rose 3.6 percent to account the overall September increase. Still, excluding that category, sales increased a firm 0.6 percent. On contrary no all sectors gave positive figures. Grocery stores recorded a 0.3% monthly drop in sales. Sporting goods, hobby, book and music stores reported a similar fall.
"Retail sales may have received some boost following Hurricane Irene but this appears to be a solid report," said Ryan Sweet at Moody's Analytics
"All told, real spending will rise in September, which sets us up well for growth this quarter."
Though economy being at the risk of recession, stronger spending could help consumer to tamp down concerns. Consumer spending is closely watched because it accounts for 70 percent of economic activity. With 20th consecutive month when stockpiles have risen, reports also show that US business inventories increased by 0.5%. This augment is boosting up the confidence as it suggests companies expected demand will continue to improve. US inventories totaled $1.54 tn the month, which counts nearly 17% higher than their September 2009 percentage.
Paul Dales cautioned that weak hiring will likely prevent consumers from spending at this rate on a month-to-month basis.
