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    Price strain: US retail sales cool in September; businesses face higher input costs; consumer resilience tested

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    US retail sales grew slower than expected in September as consumers grappled with persistently higher prices and companies faced rising input costs, according to government data released on Tuesday.Retail sales rose 0.2% month-on-month, the Commerce Department said, easing from 0.6% in August and falling short of analyst estimates. The moderation in spending comes at a time when households are feeling the pinch of elevated prices, while businesses continue to pass on higher costs.A separate Labor Department report showed producer prices rose 0.3% in September, in line with expectations. But the increase was driven largely by a 0.9% jump in goods prices, highlighting the steeper cost pressures across energy and food categories.As President Donald Trump’s tariffs ripple through the economy, analysts say attention remains on how consumers — the backbone of the world’s largest economy — will absorb higher price levels. Several companies have already flagged a rise in input costs linked to the new duties. The administration last week widened tariff exemptions for select agricultural products to offer relief amid voter concerns over living costs.Both data releases were delayed due to the record 43-day government shutdown between October and mid-November, which halted the compilation of multiple economic indicators including inflation and jobs numbers. As a result, full reports for October were cancelled and remaining figures will now be incorporated into the November update.Commerce Department data showed September retail sales were up 4.3% year-on-year. Among categories, sales at motor vehicle and parts dealers declined, while food and beverage store sales softened. Clothing, hobby and electronics retailers also posted negative readings.In the producer price index, the rise in goods prices — up 0.9% — was fuelled primarily by higher energy and food costs.





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