WASHINGTON, DC, Oct 13, 2006/ --- Shoppers around the country breathed a collective sigh of relief as gas prices fell last month, spurring growth in traditional retail sales categories.

According to the National Retail Federation (NRF), retail industry sales for September (which exclude automobiles, gas stations and restaurants) rose a strong 6.3 percent unadjusted over last year and increased 0.7 percent seasonally adjusted from August. The gains, which led third quarter sales to rise 6.3 percent over 2005, were stronger than NRF had been expecting.

“As gas prices dipped last month, consumers had more disposable income to spend on other items, especially back-to-school necessities like clothing and sporting goods,” said NRF Chief Economist Rosalind Wells. “If September’s sales are any indication, shoppers appear confident heading into the holiday season.”

September retail sales released today by the U.S. Commerce Department show that total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) dipped 0.4 percent seasonally adjusted from August and increased 5.1 percent unadjusted year-over-year. Gasoline sales, which NRF does not include in its calculation of retail industry sales, dropped 9.3 percent adjusted from August and fell 5.5 percent unadjusted over last September.

Last month’s sales gains were led by clothing and clothing accessories stores, which saw sales rise 3.0 percent adjusted from August and an impressive 11.9 percent over last year. Sporting goods, book, hobby, and music stores also saw strong growth of 1.1 percent from August and 9.1 percent over last year. Additionally, strong year-over-year gains were seen at furniture and home furnishings stores (4.8%), electronics and appliances stores (4.4%) and general merchandise stores (6.5%).

Food and beverage stores, which experienced growth of 4.7 percent unadjusted over last year, were the only retail industry sales category to see a dip in month-to-month spending. Those sales fell 0.3 percent adjusted from August.

NRF expects retail industry sales to increase 6.5 percent this year over 2005. Holiday sales, which are defined as retail industry sales in the full months of November and December, are expected to rise 5.0 percent to $457.4 billion.

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