These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product and were previously said to have advanced 0.4 percent in August.
Last month's weak core sales and the downward revision to August's figure, together with another report from the Commerce Department showing business inventories were again unchanged in August, prompted JPMorgan to cut its third-quarter GDP estimate by half a percentage point to an annual rate of 1 percent.
The economy grew at a 3.9 percent pace in the second quarter. Some economists, however, cautioned against reading too much into the soft retail sales report, noting that discretionary spending remained fairly healthy.
Consumers boosted their purchases of automobiles and furniture and spent more on hobbies, clothing and eating out. That points to underlying strength in domestic demand which should provide some cushion against softening global growth.
Consumer Spending Still Strong
"But the overall message is that consumer spending has remained extremely strong. If sentiment had indeed shifted, it would be hard to explain why sales of cars, certainly among the more expensive items, jumped in September to their highest level since July 2005," said Harm Bandholz, chief economist at UniCredit Research in New York.
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