US retail sales cool as consumers battle higher prices

The latest economic data from the United States reveals a slowdown in retail sales growth for September, as consumers grapple with rising prices and businesses face escalating costs. According to the Commerce Department, retail sales increased by a modest 0.2 percent month-on-month, falling short of analyst expectations and marking a deceleration from August’s 0.6 percent gain. Concurrently, the Labor Department reported a 0.3 percent rise in producer prices for September, driven primarily by a 0.9 percent surge in goods costs, particularly energy and food. These trends highlight the growing economic pressures stemming from President Donald Trump’s tariffs, which have begun to ripple through the economy. Some businesses have already reported higher operational costs due to these duties, prompting the administration to expand tariff exemptions for certain agricultural products. The release of these reports was delayed due to the record-long government shutdown between October and mid-November, which disrupted the collection and publication of key economic data. Year-on-year, retail sales in September were up 4.3 percent, though specific sectors such as motor vehicles, clothing, and electronics experienced declines. The data underscores the challenges facing both consumers and businesses as they navigate an increasingly complex economic landscape.