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Retail sales fall
Key component of consumer spending, which makes up two-thirds of the economy, weak in September.
October 15, 2003: 11:34 AM EDT

NEW YORK (CNN/Money) - Retail sales fell in the United States last month, the government said Wednesday, missing analysts' expectations, but upward revisions to prior months' data showed consumer spending was still robust in the third quarter.

The Commerce Department said retail sales fell 0.2 percent to $320.6 billion after rising an upwardly revised 1.2 percent in August. Excluding volatile automobile sales, retail sales rose 0.3 percent after rising a revised 1.2 percent in August.

Economists, on average, expected sales to fall 0.1 percent and sales excluding autos to rise 0.4 percent, according to Briefing.com.

August's gain in retail sales was previously reported as just 0.6 percent, and July's sales growth was also revised upward, to 1.4 percent from 1.3 percent. The upward revisions had some economists boosting their expectations for the annual rate of growth in consumer spending and gross domestic product (GDP) in the third quarter.

"We now estimate that total real consumption rose at a 6.5-percent annual rate in the third quarter as a whole, above the 5.5 percent we assumed when we raised our estimate for total real GDP growth to 5.5 percent from 4.5 percent," UBS Warburg chief economist Maury Harris said.

GDP is the broadest measure of economic activity, most of which is composed of consumer spending.

"With consumption accounting for about 70 percent of GDP, the extra strength should add about 0.7 point to total GDP growth," Harris added, saying he would wait for Thursday's report on business inventories before again adjusting his GDP outlook.

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U.S. stock market futures rose after the report, pointing to a positive opening on Wall Street, but stocks turned mixed in early trading. Treasury bond prices fell.

Sales of autos and auto parts fell 1.6 percent following a gain of 0.9 percent in August. Gasoline sales rose 0.3 percent, compared with a 3.5-percent jump in August.

Sales of building and garden equipment surged 1.9 percent, following August's 0.5-percent gain. Furniture sales fell 0.2 percent after rising 0.7 percent in August. Sales of electronics fell 0.3 percent after rising 1.4 percent in August.

Department-store sales were flat, following a 0.6 percent gain in August. Clothing sales rose 1.4 percent, following a 0.3 percent drop in August.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.