September retail sales grow at torrid 1.5%, indicating strong overall third quarter growth

WASHINGTON, D.C. – September growth in retail spending soared past projections, the Commerce Department announced today. In a clear indication of America’s economic strength, retail sales soared by 1.5 percent, more than doubling Wall Street expectations of 0.7 percent. Figures for August were also revised up from a 0.3 percent decline to a 0.2 percent expansion. Excluding autos from the numbers shows a stellar 0.6 percent increase.

“John Kerry wants to talk down the economy and scare consumers, but it’s not working,” said ATR President Grover Norquist. “President Bush’s tax cuts put more money in people pockets, and they are using it to propel the economy forward. It is quite apparent the doom and gloom being professed by Kerry and Edwards is non existent. In fact, the economy is growing faster today than anytime in the past twenty years.”

Overall retail sales growth was the biggest increase since March, and year-on-year, sales were up 7.7 percent. Economists consider retail sales a dominant component of overall consumer spending, which in turn makes up two-thirds of U.S. economic output, and today’s numbers indicate solid growth for Gross Domestic Product for the period from July through September.

For the past two quarters, GDP has increased at its fastest year over year rate in 20 years. Today’s retail sales numbers coupled with other releases today such as inventories and industrial production point to very strong growth in for the July through September period. Since President Bush signed into law the Jobs and Growth Tax Relief Reconciliation Act, GDP has expanded at a stellar 4.7 percent rate, far above the long run growth of 3.2 percent.

When taxpayers are allowed to keep more of their own hard-earned money, they drive the economy and make it grow,” said ATR President Grover Norquist. “President Bush’s tax cuts should be made permanent so American economic growth can continue.”