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Retail sales ring up 0.3 pct.
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October 15, 1997: 9:04 a.m. ET
New automobile purchases push up retail sales in September
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NEW YORK (CNNfn) - Retail sales pushed ahead in September, the U.S. Commerce Department said Wednesday, helped by strong new car sales.
Wall Street had been expecting the figure to remain flat, but instead retail sales last month rose 0.3 percent to a seasonally adjusted $215.5 billion. However, that was still the slowest rate of growth in four months.
Stronger new auto sales were apparently the reason for the higher-than-anticipated numbers. Automobile sales rose 1.9 percent in September, more than twice the 0.8 percent gain registered in August. New car sales account for about 25 percent of all retail sales in the United States.
Excluding the volatile auto sector, retail sales were up 0.2 percent.
Apparel sales dropped 0.7 percent in September, in contrast to what is typically a strong month as people begin buying clothes for the colder weather.
Rosanne Cahn, chief economist at CS First Boston, blamed unseasonable warmth as the cause. "I think good weather is now an impediment to selling, at least until we get into some cooler weather."
General merchandise sales were also lower last month, falling 0.6 percent.
The Federal Reserve watches retail sales figures closely for signs of greater consumer demand signaling inflationary pressures.
However, Cahn said the Fed is more concerned lately with a shortage of workers, which could push up wages and trigger inflation. The Federal Reserve next meets on November 12 to decide on interest rate policy.
-- Randy Schultz
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