Consumer spending falls in September, CNBC/NRF Retail Monitor finds

Core Insights - Consumers have paused spending in September after two months of gains, with hopes that this pause will refresh spending ahead of the holiday season [1] Retail Sales Performance - Total retail sales, excluding gas, dropped by 0.7% in September, marking the first decline in three months [2] - Year-over-year, retail sales remained strong at 5.4% and 5.7%, above the long-term average [2] - Seven out of twelve retail categories experienced declines, with furniture, restaurants, bars, and general merchandise leading the downturn [3] Economic Context - The declines in retail sales may be a result of consumers preserving spending power amid economic uncertainty, preparing for the holiday season [5] - The potential impact of a government shutdown and a soft jobs market adds to the uncertainty surrounding consumer spending during the holiday season [5][9] - The economic impact of the government shutdown could result in a GDP hit of approximately 0.1% per week, although some of this loss may be recovered once employees are paid [10]