MNI DATA ANALYSIS: US August Retail Sales Rise 0.1%>

--September Retail Sales Ex. Auto Down 0.1%; Control Group Up 0.5%

By Shikha Dave and Harrison Clarke

     WASHINGTON (MNI) - The value of retail sales rose by 0.1% in 

September overall and fell 0.1% excluding motor vehicle sales, below 

expectations for 0.6% and 0.4% gains, respectively, but following 

mixed revisions to sales in August, data released by the Commerce 

Department Monday showed. 

     The data suggests that there was indeterminate impact from 

Hurricane Florence. A greater impact would be expected from Hurricane 

Michael in the October data. 

--MOTOR VEHICLE SALES RISE, GAS DOWN

     Motor vehicle sales posted a 0.8% increase, led by the replacement 

of vehicles in the Southeast, while gasoline station sales fell by 0.8% 

in September after a 1.1% August gain, but outside of both motor 

vehicles and gasoline, retail sales posted a flat reading. 

     Clothing stores sales rose by 0.5% in the month, while 

building materials sales increased 0.1%. Sales of building materials are 

likely to be lifted in the coming months by rebuilding efforts in the 

hurricane-impacted regions.

     Food services and drinking places' sales fell by 1.8% and 

electronics store sales rose by 0.9%. Retail sales excluding autos, 

gasoline, and building materials were flat in September. Further, 

excluding food services as well as the other three measures, retail 

sales were up 0.5% after a flat reading in August, suggesting mixed 

underlying growth. 

--3Q CONSUMPTION SOLID

     Incorporating the mixed revisions to August sales and the downward 

revisions to July sales, third quarter retail sales were up 5.1% at an 

annual rate from the second quarter average, suggesting upward momentum. 

     Sales excluding motor vehicles were up 6.4% at an annual rate from 

the previous quarter, while sales excluding autos, building materials, 

and gas were up 6.0%. Even when food services were also excluded, 

third quarter sales were up 4.8% at an annual rate from the second 

quarter, pointing to underlying strength outside the volatile 

categories. 

     ** MNI Washington Bureau: 202-371-2121 ** 

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