J.P. Morgan CEO Jamie Dimon said that the American consumer was “healthy,” as evidenced by low unemployment and strong spending habits.
This morning, however, data from the Commerce Department suggests that consumers are starting to slip. U.S. retail sales dropped 0.3% in September – falling for the first time in seven months – as Americans cut spending on online purchases (sorry, Mr. Bezos), building materials, and automobiles.
In August, the Commerce Department initially claimed that retail sales grew by 0.4%, before revising the figure to a more accurate 0.6% gain. Economists expected a 0.3% increase in September, making the most recent sales reading somewhat of a shock.
But according to analysts, September’s retail slump is not something to worry about. At least, not yet.
“While this is by no means conclusive evidence that the consumer is wavering (after all, the upward revisions reduce the impact of September’s declines), it nonetheless reinforces our ongoing concern that a spending retrenchment will ultimately trigger a more durable slowdown,” wrote Ian Lyngen, BMO Capital Markets’ head of rates research.
The automobile industry got the worst of it, as monthly auto sales dropped 0.9%, marking the worst sales decrease in eight months. Service stations felt some pain, too, and endured a 0.7% drop, fueled by low gas prices.
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