US retail sales continued their upward trajectory in September, marking the 12th consecutive month of growth even as rising gasoline prices placed growing pressure on household budgets. Data powered by Affinity Solutions and released by the National Retail Federation (NRF) showed that total retail sales, excluding automobile dealers and petrol stations, reached $560.8 billion for the month.
Sales Growth Picks Up Pace Month Over Month
Consumer spending edged higher by 0.28% compared to August and climbed 4.05% year over year, both figures representing a modest acceleration from August’s gains of 0.22% month-on-month and 3.87% year-on-year. The continued momentum in US retail sales growth signals that shoppers, while cautious, have not pulled back from spending altogether.
NRF President and CEO Matthew Shay noted that retail sales rose again as consumers continued to spend following a solid back-to-school shopping season. He added that households remain budget conscious, concentrating on everyday essentials even as higher gasoline prices continue to absorb a larger share of family budgets. Shay also noted that retailers have continued to prioritise affordability, leaning on promotions and value pricing to keep everyday products within reach.
Core Retail Sales Reflect Similar Trend
The Retail Monitor’s calculation of core retail sales — which strips out restaurant, auto dealer, and petrol station transactions — came in at $453.1 billion in September. This represented a 0.27% increase month over month and a 3.73% rise compared to the same period last year. For context, August’s core figures showed smaller gains of 0.17% month over month and 3.47% year over year, pointing to a modest but visible acceleration in consumer spending activity.
Mixed Performance Across Retail Categories
Performance across retail categories was varied. Clothing and accessories sales totalled $41.9 billion, reflecting a 0.48% increase from the prior month and 2.21% growth on a year-over-year basis.
Electronics and appliances stood out as the strongest-performing sector, posting an impressive 8.41% year-over-year growth, defying the broader consumer pivot toward everyday essentials. On the other end of the spectrum, furniture and home furnishings was the only major sector to record a year-on-year decline, falling by 2.7% compared to September of the previous year.
Updated Methodology Debuts with September Data
September’s figures also mark the introduction of a revised methodology for the CNBC/NRF Retail Monitor. The updated approach is now based on spending patterns drawn from approximately 120 million debit and credit cards, with results adjusted to reflect the demographic makeup of US consumers and aligned with US Census Bureau retail sales totals. This change is aimed at enhancing the accuracy and representativeness of the monitor’s retail sales data going forward.
With US retail sales growth holding steady for a full year and consumer spending continuing to hold ground despite macroeconomic headwinds, the data underscores the resilience of American shoppers even as they remain firmly focused on everyday essentials and value-driven purchasing decisions.
