Retail sales edge lower

September’s U.S. retail and food service sales declined 0.6% from the prior month while beating the year-earlier tally by 5.4% as consumers remained cautious ahead of the holiday shopping season, according to the latest tracking by the National Retail Federation.

“Retail sales dipped in September as consumers hit the pause button after two solid months of back-to-school spending,” the group's CEO, Matthew Shay, said in a statement Thursday. Shay said continued economic uncertainty spurred consumers to “preserve spending power” ahead of the coming holidays.

Excluding auto and gasoline sales, the trade group said sales declined in five of nine tracked categories on a monthly basis but increased in eight categories on an annual basis. September sales growth was led by digital products such as electronic books and games, up 0.5% for the month and 21.4% for the year; and sporting and hobby items, up 0.7% for the month and 8.8% for the year.

The retail group’s monthly monitor report is compiled with researchers at business news outlet CNBC, and based on anonymized credit and debit card data collected by consulting firm Affinity Solutions. It is viewed as a preview of government reporting on retail and food service sales, with the Commerce Department scheduled to release September data on Oct. 16, though that could be delayed by the federal shutdown.