Retail sales slowed in September

US retail sales rose 0.2% in September, according to delayed Commerce Department data. It is lower than the 0.6% gain in July and August, and the 1% rise in June.

The slowdown suggests American consumers eased spending, pressured by high prices for groceries, rent, and tariff-affected imports. 

Higher-income households continue to drive much of the spending, while lower-income consumers focus on necessities.

The labor market also shows signs of strain. Unemployment rose to 4.4% in September, the highest in nearly four years, while hiring remained weak.

Even so, economists expect solid economic growth of 3% or more for the July–September quarter, up from 1.6% in the first half of the year.

Discount retailers benefit
Companies known for bargains did well. Walmart beat expectations and raised its profit forecast, T.J. Maxx parent boosted its annual sales, and Best Buy saw its strongest same-store sales in four years.

Coming next
Holiday sales are expected to see modest growth, with total spending projected to exceed $1 trillion for the first time.