Retail Sales Growth Slows, 'K-Shaped' Economy Persists

Retail sales in the U.S. saw a smaller-than-expected increase in September, with a 0.2% growth, following a stronger August. Experts had predicted a higher rise of 0.4%. Despite this slowdown, overall consumer spending likely increased in the third quarter. Sales excluding big-ticket items dipped by 0.1% in September, indicating a K-shaped economy where different income groups experience varying economic realities. Higher-income households are driving current spending, while middle and lower-income consumers face rising costs. Job growth bounced back in September, but unemployment reached a four-year high of 4.4%. Recent stock market dips and potential spending cuts from high-income households could slow down economic growth. The official third-quarter GDP estimate is due on December 23rd. The Daily News Now! - Every city. Every story. AI Powered. Hosted on Acast. See acast.com/privacy for more information.