Two reports note progress in retail sales

Consumers opened up their wallets in September to treat themselves to new fall apparel and other discretionary purchases, helping the month's retail sales see modest improvements. According to the National Retail Federation, retail industry sales (which exclude automobiles, gas stations, and restaurants) increased 0.5 percent from August, but fell 1.5 percent year-over-year

Meanwhile, The Deloitte Consumer Spending Index also rose in September, hitting its highest level in two years. The Index attempts to track consumer cash flow as an indicator of future consumer spending.

NRF Chief Econimist Rosalin Wells said that retail is not out of the woods yet, "but consumers felt comfortable enough last month to spend on more than just necessities. As we head into the essential fourth quarter, retailers will likely continue aggressive promotions and discounts to bring people back into stores.”
 
September retail sales released by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) decreased 1.5 percent seasonally adjusted from the previous month and 5.4 percent unadjusted year-over-year.
 
Thanks to cooler weather, Labor Day sales and a final push for back-to-school shopping, clothing and clothing accessories stores sales increased 0.5 percent adjusted from August but decreased 0.4 percent unadjusted year-over-year. Electronics and appliance store sales were flat from the previous month and decreased 9.9 percent unadjusted over last year. 
 
Deloitte Research chief economist Carl Steidtmann echoed the promising news. "The fundamentals of consumer spending continue to improve, giving households increased purchasing power," Steidtmann said. Deloitte Research is  a subsidiary of Deloitte Services LP and author of the monthly Index. "The housing market is beginning to show signs of stabilizing, while initial unemployment claims have fallen significantly. Household net worth is rising and real wages are climbing at their fastest pace in 40 years. Signs of recovery got a boost from the cash for clunkers program in August, plus a gain in real spending has materialized across the board in recent months."

The Index, comprising four components -- tax burden, initial unemployment claims, real wages and real home prices -- rose to 3.44 percent, from an upwardly revised gain of 3.08 percent a month ago.

"The Index suggests that many households increasingly have the means to spend, and with the worst of the downturn seemingly behind us, the retail environment may soon see signs of life," said Stacy Janiak, vice chairman and Deloitte's U.S. Retail leader. "Retailers have tackled cost cutting and cash conservation and the next few months will likely be all about enticing the consumer to spend. Offering personalized marketing, enhancing in-store customer conversion tactics and encouraging online product reviews are just a few of the ways that retailers may be able to gain an edge this holiday season."