Retail Sales, Producers Prices Flash Warning Signs on Economy

According to the latest reports, U.S. retail sales declined in September and prices paid by businesses also fell – sending shock waves through the financial markets.

Total retail sales dropped 0.3 percent, the Commerce Department said.

Experts had anticipated a drop, as auto production has cooled and oil prices have fallen sharply in recent months. Perhaps more disturbing was a drop in core sales, which do not include automobiles, gasoline, building materials and food services, and match most closely with the consumer spending component of gross domestic product.

Economists polled by Reuters had expected the reading to increase last month. Instead, it fell 0.2 percent.

In September, sales at clothing retailers dropped 1.2 percent and receipts at sporting goods shops edged 0.1 percent lower.

Sales at electronics and appliance stores, however, jumped 3.4 percent last month, notably when Apple released a new version of its flagship cellular phone.

Category: General Update, Management