Retail sales up 0.8% in September, but a big chunk of spending went to paying gasoline bills

NEW YORK (AP) — Shoppers showed their willingness to spend in September even after a better-than-expected splurge in August.

But a big chunk of their purchases last month went toward paying the bills at the gas pump, according to the Commerce Department's latest snapshot on retail sales released Thursday.

Retail sales increased 0.8% last month, after a revised 1.3% gain in August, the Commerce Department said. Economists were anticipating a 0.3% increase for the month, according to FactSet.

Excluding business at gas stations, retail sales rose 0.2% in September. The government figures aren’t adjusted for inflation, which accelerated last month as gasoline and many other goods and services became more expensive.

In fact, business at gas stations rose 6.4%, according to the Commerce Department's report.

Elsewhere, business at furniture and home furnishings stores rose 1.3%, while electronics and appliance stores saw a 0.6% increase. Business at online retailers rose 0.3%, according to the report. Clothing and accessories stores saw business unchanged from the previous month.

The data offers only a snapshot of consumer spending and doesn’t include activities like travel and hotel stays. But the lone services category – restaurants – registered a solid 1.1% increase.

“The large jump in headline retail sales in September was almost entirely due to rising gasoline prices,” Michael Pearce, chief U.S. economist at Oxford Economics, wrote in a note.

Pearce noted that consumer spending is still on track for a 3.3% annualized gain during the third quarter, but he expects spending to lose momentum heading into the key holiday shopping season as the drag from higher prices weighs more heavily on consumers.

Many Americans have continued to spend despite skyrocketing gas prices that have accompanied renewed fighting in the Middle East.

The average price for regular gasoline rose overnight to $4.33 per gallon Thursday, according to motor club AAA. Before the war began, the cost of gas per gallon was less than $3.

The retail sales report comes as U.S. employers added a disappointing 29,000 jobs and the unemployment rate ticked up last month, the government reported earlier this month. Still, the U.S. job market has proven solid in the face of a series of shocks, from tariffs to the Iran War.

But rising prices are still a big challenge for shoppers. The Labor Department reported on Wednesday that the consumer price index rose 3.7% in September compared with a year ago, up from 3.4% in August.

On a monthly basis, costs jumped 0.6% from August to September, the biggest gain in five months, up from a 0.4% increase the previous month. The cost of toys, new and used cars, sporting goods, and shoes all rose at a rapid clip last month, the government said.

Natalie Kotlyar, national leader of BDO's retail and consumer products practice, noted that she wouldn't read the retail sales report as a reflection of broad consumer strength.

“With inflation running above 3% and gas prices high, part of this gain is simply higher prices, and many shoppers are leaning on savings and promotions to stretch their budgets,” she said.

Kotlyar noted that strong sales alongside paychecks that aren’t keeping pace with prices can’t last forever, so retailers need to protect their profit margins and keep inventory flexible as they head into November and December.

A shopper shops at a retail store in Northbrook, Ill., Wednesday, Oct. 14, 2026. (AP Photo/Nam Y. Huh)

A "We buy gold" sign is displayed at a jewelry store in Morton Grove, Ill., Wednesday, Oct. 14, 2026. (AP Photo/Nam Y. Huh)

A Florida man has been charged with killing the mother of his children nearly 15 years ago, after his ex-fiancee went missing just hours after their pretaped appearance on “The People’s Court” was broadcast, police said.

Orlando police announced the arrest Wednesday of Dale Smith Jr., 55, on a charge of second-degree murder. The body of 33-year-old Michelle Parker has not been recovered, but all evidence leads to Smith as the person responsible for her death, police said.

Smith's attorney, Rajan Joshi, said during a hearing Thursday afternoon that he didn't believe the state could meet its burden of proof to convict Smith based on the information presented in the criminal complaint. A judge ordered Smith to be held without bond pending a detention hearing, which wasn't immediately scheduled.

Orlando Police Chief Eric Smith, who is not related to Smith, said during the news conference on Wednesday that the case never stopped being a priority. Smith was the last known person to see or hear from Parker before she went missing on Nov. 17, 2011, when she dropped their children off at his home, the chief said.

“Over the past year, we expanded our investigative team looking into this case and took a fresh, focused look at all the evidence,” the police chief said. “We reexamined testimony and conflicting statements made by the suspect and used advances in digital forensics to uncover and analyze additional evidence.”

Police gave few details about what evidence they had against Smith, but Detective Phillip McMican confirmed that police had collected new evidence in the past year, as well as new insights into old evidence thanks to technological advancements.

“Vehicles, electronic devices, phones, computers — we’re able to better interpret that evidence today than what we were able to do back in 2011,” McMican said.

Police continue to search for Parker's body. Her vehicle was found abandoned a day after her disappearance, and her cellphone was later recovered from an Orlando-area lake.

Investigators have not publicly stated a motive for Parker’s murder.

On the day of Parker's disappearance, an episode of “The People's Court” featuring her and Smith was broadcast. Smith had sued Parker, claiming that a $5,000 engagement ring that he bought for her became lost when she threw it at him during an argument. Judge Marilyn Milian ultimately ruled that both parties were responsible for the ring's loss and ordered Parker to pay $2,500 to Smith for half of it.

This undated booking photo provided by the Orlando Police Department on Thursday, Oct. 15, 2026, shows Dale Smith Jr. (Orlando Police Department via AP)

In this image taken from video released by the Orlando Police Department, Dale Smith Jr. is taken into custody in Orlando, Fla., on Wednesday, Oct. 14, 2026. (Orlando Police Department via AP)

In this image taken from video released by the Orlando Police Department, Dale Smith Jr. is taken into custody in Orlando, Fla., on Wednesday, Oct. 14, 2026. (Orlando Police Department via AP)