Weak US retail sales cast shadow over slowing economy
CGTN
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US retail sales fell for the first time in seven months in September, suggesting that manufacturing-led weakness could be spreading to the broader economy, keeping the door open for the US Federal Reserve to cut interest rates again later this month.

The downbeat report from the US Commerce Department on Wednesday came on the heels of data this month showing a moderation in job growth and services sector activity in September. Signs of cracks in the economy's main pillar of support, ahead of the holiday season, could further stoke financial market fears of a sharper slowdown in economic growth.

The economy is being hamstrung by a 15-month trade war between the United States and China, which has soured business sentiment, leading to a decline in capital expenditure and a recession in manufacturing.

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Shoppers at the King of Prussia Mall, US's largest retail shopping space, in King of Prussia, Pennsylvania, US, December 8, 2018. (Photo: CGTN)

"This morning's report solidifies concerns of the consumer's inability to perpetually support the economy alone," said Lindsey Piegza, chief economist at Stifel in Chicago. "With business investment declining and manufacturing activity deteriorating, many investors brushed off fears of a slowdown because the consumer was still spending."

Retail sales dropped by 0.3 percent last month as households cut back spending on motor vehicles, building materials, hobbies and online purchases. That was the first drop since February. Data for August was revised up to show retail sales rising by 0.6 percent instead of 0.4 percent as previously reported.