WASHINGTON (Reuters) - Sales at U.S. retailers fell in September, hurt by a slump in motor vehicle purchases as government-sponsored incentives ended, but the decline was less than expected, a government report showed on Wednesday.
Stripping out the volatile autos component, sales increased for a second straight month in September, cementing the view that consumer spending recovered and the economy started growing in the third quarter after the worst U.S. recession since the 1930s.
The Commerce Department said total retail sales fell 1.5 percent in September, the biggest decline since December, after surging by a revised 2.2 percent in August. Sales in August were previously reported to have increased by 2.7 percent.
Analysts polled by Reuters had forecast headline retail sales falling 2.1 percent in September. Sales in September were dragged down by a drop in vehicle purchases following the end of the government's popular "cash for clunkers" program in August.
That plan gave consumers cash to trade in aging gas-guzzlers for new, more fuel efficient models. Motor vehicle and parts sales tumbled 10.4 percent in September, the largest fall since August 2005, after rising 7.8 percent the prior month.
Excluding motor vehicles and parts, retail sale rose by a bigger-than-expected 0.5 percent in September after increasing 1.0 percent in August. Economists had expected a 0.2 percent increase. Sales were probably supported by back-to-school buying, as well as the best furniture and home furnishings sales since January 2007.
Gasoline station sales rose 1.1 percent in September after rising 4.7 percent in August. Excluding gasoline and motor vehicles, retail sales rose 0.4 percent versus a 0.6 percent gain in August.
Sales of building materials dipped 0.2 percent in September after a 1.2 percent drop the prior month.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)