U.S. retail sales for the month of September recorded its highest upsurge in more than two years thanks to the renovation and clean-up efforts in areas affected by the recent Hurricanes of Harvey and Irma. The misfortunes added to the demands for hardware materials and motor automobiles.
Last week, The Commerce Department announced a 1.6% increase for the month of September which is actually the biggest growth since March 2015. Additionally, the department revised the data for August from 0.2% to 0.1%.
On an annual basis, the Retail sales soared by at least 4.4% which exceeded the estimated results of just 1.7% for the month of September.
A gardening store in the US.
The landfall of Hurricane Harvey and Irma devastated the areas of Florida and Texas back in late August and early September. With such occurrence, sales for gardening and building material stores climbed by at least 2.1% - the largest increase since this year’s February.
Automobile retails also showed improvement in September. The data for the sector added 3.6% and the possible reason behind such surge is consumers are replacing cars which were damaged from the recent hurricanes.
In service stations, Retail sales added a 5.8% increase which was the biggest once since February 2013. The result was followed by a 4.1% upsurge in August.
If not to count the abovementioned sectors, the total upsurge for the Retail sector added at least 0.4% which is the same value posted for the month of August. The core retail sales depended mostly with the consumer spending element of gross domestic product. Such data suggests that the economy will rebound modestly despite the impact of the recent calamities.
Economists expected that the recent devastations would cause a six-tenth decline from the third quarter results of the third-quarter GDP growth.
In an annualized rate, the economy climbed by 3.1% in the period of April to June.
As for the other retail sectors, electronics and appliances declined by 1.1% in September. Retail for clothes added 0.4%.
Department Store retailers suffered a decline due to the traffic in shopping malls and the rising e-commerce industry such as the Amazon. The online sector improved by 0.5% in September.
The posted data for the Restaurant and Bars climbed by 0.8% while the sporting goods sector and hobby stores declined by 0.2%.
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