US Retail Sales Drags Down Auto Industry
The US retail sales have dragged down the sales of the auto industry in September as consumers continue not to spend. According to the Commerce Department, the low demand for retail products resulted to a drop of 1.5 percent, and an even slow sales output for the auto market at the end of the cash for clunkers program of the government.
Experts are also monitoring the situation to avoid further slip in the economic recovery process.
A new data from the US Commerce Department on Wednesday showed that drop in retail sales in September has greatly affected the sales of the auto industry.
According to the document, retail sales in the US have plummeted by 1.5 percent in September dragging along with it the embattled sales output of the auto market. It was the biggest drop this year and shorter by more than 2.1 percent that had been earlier predicted.
Some of the economists at the Commerce Department said that they expect more drop in the sale of the retail market, which can slide further by 3.2 percent by December of this year.
In line with this, the car sales in the US have also plunged by 10.4 percent due to the low consumer demand, which is also responsible for some 70 percent total economic activity of the nation. The department said that they are now monitoring closely the activity in the market to make the necessary adjustments or programs in the wake of the recession.
Analysts blamed high unemployment rate and tighter credit condition in the banking system for the fall of September sales.
The economy is measured through a country’s gross domestic product. According to experts, the economy, based on the GDP, is actually growing at an annual rate of 3 percent. However, the continued holdback by the consumer to spend may greatly affect the recovery process, especially with the holiday shopping season at sight.
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