August Retail Sales Grow, But At Slower Pace

Retail sales in August were up year-over-year as consumers’ desire to shop was not diminished by higher prices.

The U.S. Census Bureau said overall retail sales in August were up 0.6% from July and up 2.5% year-over-year. That compared with increases of 0.5% month-over-month and 2.6% year-over-year in July.

NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – showed August was up 0.1% seasonally adjusted from July and up 3.3% unadjusted year-over-year. In July, sales were up 0.7% month-over-month and also up 3.3% year-over-year.

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NRF’s numbers were up 3.2% unadjusted year-over-year on a three-month moving average as of August and up 3.8% for the first eight months of the year.

“Consumers are focused on household priorities, as evident by spending this back-to-school season,” said Matthew Shay, president and CEO of the National Retail Federation (NRF) “Entering the fall, we expect moderate growth to continue despite uncertainties like the direction of inflation and interest rates as well as a potential government shutdown.”

Jack Kleinhenz, chief economist with the NRF, said while the pace of retail growth cooled from July, consumers are still active as they continue to be selective and price sensitive.

“Households have the capacity to spend, but momentum is slowing, in part because savings built up during the pandemic are running lower and credit costs are rising,” he said. “Consumer spending growth has slowed but there is little hint of any sudden collapse.”

August sales were up in five out of nine retail categories on a yearly basis, led by health and personal care stores, online sales and clothing and accessory stores, and up in all but two categories on a monthly basis. Specifics from key sectors include: 

• Health and personal care stores were up 0.5% month-over-month seasonally adjusted and up 7.8% unadjusted year-over-year.
• Online and other non-store sales were unchanged month-over-month seasonally adjusted but up 7.6% unadjusted year-over-year.
• Clothing and clothing accessory stores were up 0.9% month-over-month seasonally adjusted and up 3.6% unadjusted year-over-year.
• General merchandise stores were up 0.3% month-over-month seasonally adjusted and up 3% unadjusted year-over-year.
• Grocery and beverage stores were up 0.4% month-over-month seasonally adjusted and up 2.8% unadjusted year-over-year.
• Electronics and appliance stores were up 0.7% month-over-month seasonally adjusted but down 1.6% unadjusted year-over-year.
• Sporting goods stores were down 1.6% month-over-month seasonally adjusted and also down 1.6% unadjusted year-over-year.
• Building materials and garden supply stores were up 0.1% month-over-month seasonally adjusted but down 3.8% unadjusted year-over-year.
• Furniture and home furnishings stores were down 1% month-over-month seasonally adjusted and down 7.6% unadjusted year-over-year.