The summer spending spree is officially over.
The report also showed that the so-called retail control-group sales – which is used to calculate GDP and excludes food services, auto dealers, building-materials stores and gasoline stations — rose a paltry 0.1%, far below the 0.5% consensus and down from 0.8% revised July print.
While household spending, the biggest part of the economy, continues to drive economic growth this quarter, still-tepid pay gains and higher borrowing costs are among reasons why it's projected to cool from its second-quarter pace.
Curiously, looking at the detailed sales breakdown, only 4 of 13 major retail categories showed decreases.
In contrast, sales rose 1.7% at filling stations, as Labor Department consumer-price data showed seasonally adjusted gasoline prices increased 3%, the most since April.