US retail sales slow
American consumers are becoming more cautious.
Sales at US retailers rose a smaller-than-expected 0.3% in August and recorded the biggest decline in almost a year when car sales were stripped out, according to figures released yesterday.Excluding the sharp rise in auto sales, retail sales fell 0.4 percent in August after an upwardly revised 0.7 percent increase in July. With the decrease, the annual rate of ex-auto sales fell to 3.9 percent from 4.9 percent.
The decrease came as surprise to economists, who had expected ex-auto sales to rise 0.2 percent compared to the 0.4 percent increase originally reported for the previous month.
Although the data added to recent concerns about the possibility of a recession, it also further solidified expectations of an interest rate cut by the Federal Reserve next Tuesday.
