US retail sales fall as consumers hold back

As widely feared, retail sales in the US took a dive in September as consumer confidence was dented by the terrorist attacks last month.

The latest retail sales figures available indicate that in September sales dipped by 2.4 per cent. This was a much bigger slide than had been anticipated as is the worst fall in retail sales in almost ten years.

On the release of the figures, the US dollar fell sharply against a basket of foreign currencies.

Among the worst affected areas are major clothing and department stores. Other retail sectors hard-hit by the retail slump are cars and luxury goods. Car sales in the US have fallen by 4.6 per cent, while other sectors such as hospitality and clothes have seen a fall of around 5 per cent. But most worryingly “e-tailers” have reported a dip of 8 per cent in their September sales as consumers hold back on spending in the current climate of economic uncertainty.

However, some staple product sectors, such as food and fuel were, up on the previous month.

Government figures released also revealed that producer material supply prices had risen last month, fuelling fears that manufacturing costs to businesses could increase further. (SP)