US retail sales increased 0.8% mom in September, exceeding expectations of 0.6%, although growth slowed from an upwardly revised 1.3% in August. According to the Census Bureau, total retail and food services sales reached USD 745.0B, up 6.3% yoy. Sales excluding autos also beat forecasts, rising 0.9% mom against expectations of 0.6%, but moderating from August’s 1.4% increase. However, the underlying picture was considerably weaker once gasoline sales were excluded. Retail sales excluding gasoline slowed sharply from 1.0% to just 0.2% mom, while sales excluding both autos and gasoline decelerated from 1.1% to 0.2%. The latter increase was not statistically distinguishable from zero at the 90% confidence level, suggesting that the headline beat substantially overstated the strength of spending growth across the broader retail sector.
Gasoline stations accounted for approximately 71% of September’s increase in total retail sales, highlighting the dominant influence of higher fuel spending. Gasoline station receipts surged 6.4% mom, accelerating from August’s 4.0% increase, while annual growth reached 28.1%. In dollar terms, gasoline station sales increased by approximately USD 4.1B, accounting for most of the USD 5.7B rise in total retail and food services sales. The increase coincided with September’s sharp rise in gasoline prices, suggesting that higher fuel costs contributed significantly to nominal spending growth. However, retail sales figures are not adjusted for inflation, meaning stronger gasoline receipts do not necessarily indicate increased fuel consumption. The concentration of sales growth in gasoline stations therefore raises questions about the strength of underlying consumer demand.
Spending across other retail categories was mixed, with several important segments losing momentum despite continued growth in food services. Restaurant and drinking place sales increased 1.1% mom, following August’s 1.4% gain, while furniture and home furnishings sales strengthened from 0.2% to 1.3%. However, nonstore retailer sales slowed sharply from 2.0% to 0.3%, and motor vehicle and parts sales moderated from 0.7% to 0.2%. General merchandise sales slipped 0.1%, while building materials and garden supplies declined 0.6%. The figures suggest that consumer spending momentum weakened outside gasoline stations, despite the stronger-than-expected headline reading. With retail sales measured in current dollars, the report also provides limited evidence of the underlying strength of inflation-adjusted consumption, particularly amid September’s substantial increases in consumer and producer prices.
Data Summary — US September 2026 Retail Sales
Headline Retail Sales
| Indicator | Aug | Sep | Consensus |
|---|---|---|---|
| Retail Sales m/m | +1.3% | +0.8% | +0.6% |
| Retail Sales ex Autos m/m | +1.4% | +0.9% | +0.6% |
Total retail and food services sales: USD 739.3B in August to USD 745.0B in September.
Annual growth: +5.6% to +6.3% yoy.
August’s headline monthly growth was revised upward from 1.1% to 1.3%.
Source: US Census Bureau, Advance Monthly Retail Sales, released October 15, 2026.
Underlying Sales and Retail Components
| Component | Aug m/m | Sep m/m |
|---|---|---|
| Retail Sales ex Gasoline | +1.0% | +0.2% |
| Retail Sales ex Autos and Gasoline | +1.1% | +0.2% |
| Gasoline Stations | +4.0% | +6.4% |
| Food Services and Drinking Places | +1.4% | +1.1% |
| Furniture and Home Furnishings | +0.2% | +1.3% |
| Department Stores | -0.6% | +1.6% |
| Health and Personal Care | +1.2% | +0.7% |
| Electronics and Appliances | +2.1% | +0.6% |
| Motor Vehicles and Parts | +0.7% | +0.2% |
| Nonstore Retailers | +2.0% | +0.3% |
| General Merchandise | +0.8% | -0.1% |
| Building Materials and Garden Supplies | +0.2% | -0.6% |
| Sporting Goods, Hobbies and Books | +1.0% | -0.5% |
Source: US Census Bureau, September 2026 Advance Monthly Retail Sales, Table 2.
Important: Retail sales figures are seasonally adjusted but not adjusted for inflation. The 0.2% monthly increase excluding autos and gasoline was not statistically distinguishable from zero at the 90% confidence level.
Key Takeaways
- US retail sales beat forecasts but slow from August: Headline sales increased 0.8% mom in September, exceeding expectations of 0.6%, but moderating from August’s upwardly revised 1.3%. Sales excluding autos also beat forecasts, rising 0.9%.
- Underlying sales growth weakens sharply: Retail sales excluding gasoline slowed from 1.0% to 0.2% mom, while sales excluding both autos and gasoline decelerated from 1.1% to 0.2%. The figures suggest considerably softer spending momentum beneath the headline.
- Gasoline stations drive approximately 71% of the increase: Gasoline station receipts surged 6.4% mom, contributing around USD 4.1B of the USD 5.7B increase in total retail sales. Higher fuel prices likely played an important role in lifting nominal receipts.
- Spending across other categories remains mixed: Food services sales increased 1.1%, while furniture and home furnishings strengthened 1.3%. However, nonstore retail growth slowed sharply to 0.3%, motor vehicle sales moderated to 0.2%, and building materials declined 0.6%.
- Strong nominal sales do not necessarily indicate stronger real consumption: September’s retail figures were heavily influenced by gasoline spending amid rising energy prices. The report suggests weaker underlying sales growth but does not establish that inflation-adjusted consumption contracted.
