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September Retail Sales Increase Less Than Forecast, Delayed Data Show

BY MT Newswires | ECONOMIC | 11/25/25 01:31 PM EST

01:31 PM EST, 11/25/2025 (MT Newswires) -- Retail sales rose less than expected in September as spending on motor vehicle turned negative, delayed data from the US Census Bureau showed Tuesday.

Sales increased 0.2% sequentially in September, compared with the Bloomberg-compiled consensus for 0.4% growth. The pace of increase in August was left unrevised at 0.6%.

On an annual basis, retail sales grew 4.3% in September, marking a deceleration from a 5% jump the previous month.

"The consumer had been spending on a torrid pace at the beginning of (the third quarter), and it looks like they tapped the breaks at the end of the quarter," Jefferies Chief US Economist Thomas Simons said in a note e-mailed to MT Newswires.

Spending at motor vehicle and parts dealers fell 0.3% month on month in September following a 0.6% increase in August.

Last week, official data showed that the US economy saw stronger-than-expected job growth in September, though the unemployment rate hit the highest level since 2021. The data on September retail sales and nonfarm payrolls were delayed due to a 43-day-long record federal government shutdown that ended earlier this month.

"Much like the September employment data, (the latest retail sales) report presents a binary interpretation of the health of the consumer," Simons said Tuesday. "Rising concern about the labor market reported in various surveys of consumer confidence increases the risk that the pullback (in retail sales) may end up being more significant. This will continue to be the key question as we look at future retail sales reports."

Spending at sporting goods, hobby, musical instrument, and book stores fell 2.5% in September, while gasoline station sales rose 2%, official data showed.

Retail sales without the motor vehicle and gas components were up 0.1% in September, compared with Wall Street's views for a 0.3% increase.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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