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Retail sales rose in September with boost in vehicle demand

By Shubhangi on Oct 16, 2021 | 04:36 AM IST

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Retail sales rose 0.7% in September, according to data by Commerce Department.

Retailers expect that the goods shortages will not impact the holiday season.

U.S. retail sales rose in September as motor vehicles sale boosted in the month but worries surround as supply constraints could hinder this progress in the shopping season.

According to the data published by Commerce Department on Friday retail sales rose 0.7% last month. The revised data for August shows that retail sales increased 0.9% instead of 0.7% as reported earlier. In September, consumer prices increased 0.4% on a monthly basis.

The shortage of chips has forced automakers to cut production resulting in scarcity in showrooms which has led to increased prices.

Due to the pandemic, people spent on goods rather than services, but with the reopening people have again started spending on services, such as travel and restaurants.

The surge in coronavirus infections due to Delta variant, though, has slowed down the spending on services again.

Retail sales include mainly goods, with services such as healthcare, education and hotel accommodation.

Economists expect consumers to start their shopping in the holiday season early keeping the retail sales higher in October. Retailers are expecting that the goods shortages will not impact the holiday season.

Picture Credits: Reuters

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