September was not a great month for retail spending. It decreased by 0.3% which is the first fall for retail sales in seven months. It’s also the opposite of what economists thought was going to happen.
Many economists believed September’s retail numbers would rise. Spending decreased for building materials, hobbies, motor vehicles, and online shopping. More than two-thirds of the country’s economy is comprised of consumer spending.
“Weaker retail numbers provide further evidence that weakness in the manufacturing sector is spilling over into other areas of the economy,” said Jim Baird, Plante Moran Financial Advisors CIO.
The 15-month trade war between the U.S. and China continues and that, combined with cooling job growth, is thought to have contributed to the decline as well. These worrying stats could lead the Federal Reserve to implement more interest rate cutes when it gathers for its policy meeting at the end of October.