US retail sales fall as scrappage scheme ends
The Commerce Department today revealed a fall in US retail sales for the month of September as the US Government’s Car Allowance Rebate System (CARS), branded the “cash for clunkers” scheme ended.
According to the organisation, retail sales in the world’s largest economy fell 1.5% on the month – the largest amount in 2009 to date.
The news comes after a strong performance in August when US retail sales grew 2.7% as a result of the cash for clunkers scheme and represented the biggest monthly gain since January 2006.
However the scheme ended after the $3 billion funding set aside for it ran out.
The Commerce Department pointed out that car sales dropped by 10.4% in September but when vehicles were stripped out, retail sales actually rose by 0.5% – better than the 0.2% rise expected by analysts.