Washington, DC, October 14, 2005--Retail sales rose 0.2% in September. Sales in August, which were initially been reported as having dropped 2.1%, were revised to reflect a fall of 1.9%.
Economists were expecting sales in September to increase 0.4%.
The Commerce Department said it was not able to pinpoint the impact of hurricanes Katrina and Rita. But it said the effect probably went both ways, with some stores closed by the storms while others recorded stronger sales of supplies in the affected areas.
September purchases were held back by a 2.8% drop in motor vehicle and parts sales, despite ongoing dealer incentives to boost demand.
But excluding autos, retail sales rose 1.1%, compared with expectations for a 0.8% advance, building on the 1.0% increase in August.
Part of the rise was a pure price effect after the hurricanes drove gasoline prices well above $3 per gallon in many places, while the exodus of millions of motorists from the affected areas pumped up sales.
The Commerce Department said September gas station sales were up 4.0%. But retail sales excluding motor vehicles and gasoline were also higher, notching a 0.6% advance to match August's gain.
Building material and garden equipment sales were up 1.0% with furniture demand increasing 1.2%. The U.S. housing market has been rampant thanks to low borrowing costs, buoying prices and breaking records for new home sales.
But some other sources of discretionary spending showed weakness, with clothing sales down 0.2%, sporting goods and sales from hobby, book and music stores off 0.9% and department stores sales declining 0.5%.
Analysts fear high energy prices could sap consumer spending, on top of any negative fallout from Katrina and Rita, although the economic evidence so far has been mixed.
