According to the CNBC-National Retail Federation (NRF) Retail Monitor, there has been a notable growth in US retail spending throughout August. The report indicates that total retail sales, excluding automobiles and gasoline, increased by 0.5% on a seasonally adjusted basis month-on-month (MoM) and saw a year-on-year (YoY) rise of 6.81%.
In July, retail sales had experienced a growth of 1.45% MoM and 5.89% YoY.
Core retail sales—which exclude restaurants as well as automobile dealers and gas stations—grew by 0.26% MoM and 6.67% YoY in August. This is a notable decrease from July’s increases of 1.55% MoM and 5.93% YoY.
For the first eight months of this year, total sales have risen by 5.08% YoY, while core sales have increased by 5.27% YoY.
Sales in clothing and accessories stores showed a modest increase of 0.2% MoM on a seasonally adjusted basis and a robust 8.26% YoY unadjusted.
General merchandise stores reported a 0.39% MoM increase in sales, seasonally adjusted, and a 7.63% YoY unadjusted rise.
Furniture and home furnishings stores experienced a growth of 0.23% MoM, seasonally adjusted, and a 3.07% YoY increase.
Matthew Shay, president and CEO of NRF, commented, “Spending was supported by lower fuel costs, tax-free holidays, and consumers purchasing items before tariff increases take effect. We may be witnessing inflationary impacts from tariffs as recent data indicates price hikes in commodity goods.”
He added, “Despite weaker job growth than anticipated, employment remains stable and at a high level, allowing consumers to make considered spending decisions regarding household necessities. However, consumers are maintaining their spending power by reducing expenditures on non-essential services.”
Overall, the consistent growth in US retail spending reflects consumer resilience and a shift in purchasing behavior amidst economic changes.