By Emiliana Molina<\/p>\n
Consumer spending at retail stores rose less than expected in September as Americans spent less on non-essential items like electronics and more on cars and trucks.<\/p>\n
Retail sales increased a seasonally adjusted 0.1 percent in September, according to the U.S Department of Commerce, below the 0.2 percent rise economists had forecast. The government revised August sales downward by 0.2 percentage points.<\/p>\n
Excluding sales of autos, trucks and parts, which can be volatile month-to-month, sales at U.S. retailers fell 0.3 percent. Economists said weakness in so-called “core” retail sales may be cause for concern.<\/p>\n
\u201cSeptember news and downward revisions to August suggest we\u2019re ending on a sluggish note that doesn\u2019t bode well for momentum heading into Q4,\u201d said Avery Shenfeld, managing director and chief economist of CIBC.
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Consumer spending accounts for nearly 70 percent of the U.S economy, so any hint of a slowdown raises concerns that Americans are growing more cautious in the face of China\u2019s flagging economy, falling U.S. exports and volatile global markets.<\/p>\n
Federal Reserve officials are closely tracking consumer spending as they consider whether to raise interest rates in 2015. A rise in interest rates could further slow the economy by making it more expensive for consumers and businesses to borrow money, something the Fed would be less likely to do if American consumers are running out of steam.<\/p>\n