Washington – Job growth remained slow in August, but increasing retail sales overcame the challenge thanks to rising consumer demand and easing inflation according to the latest CNBC/National Retail Federation (NRF) Retail Monitor.
“Retail sales data shows that consumers continued to spend on household priorities in August,” said Matthew Shay, NRF president and CEO. “This is despite a slowing labor market that is expected to prompt the Fed to finally lower interest rates in September. Even with slower employment growth, unemployment is near historical lows and ongoing job and wage gains coupled with lower inflation should keep consumers on solid footing heading into the holiday season. Lower interest rates take time to trickle down and won’t provide an immediate boost but should stabilize the economy.”
Total retail sales, excluding automobiles and gasoline, were up 0.45 percent seasonally adjusted month over month and up 2.11 percent unadjusted year over year in August, according to the Retail Monitor. That compared with increases of 0.74 percent month over month and 0.92 percent year over year in July.
The Retail Monitor calculation of core retail sales – excluding restaurants in addition to automobiles and gasoline – was up 0.17 percent month over month in August and up 1.93 percent year over year. That compared with increases of 0.95 percent month over month and 1.69 percent year over year in July.
Total sales were up 2.08 percent year over year for the first eight months of the year and core sales were up 2.33 percent.
August sales were up in five out of nine retail categories on a yearly basis, led by online sales, clothing and accessories stores, and health and personal care stores. Sales were also up in five categories on a monthly basis. Specifics from key sectors include:
- Online and other non-store sales were up 1.49 percent month over month seasonally adjusted and up 17.03 percent year over year unadjusted.
- Clothing and accessories stores were up 2.13 percent month over month seasonally adjusted and up 11.44 percent year over year unadjusted.
- Health and personal care stores were up 0.28 percent month over month seasonally adjusted and up 6.69 percent year over year unadjusted.
- Grocery and beverage stores were up 0.86 percent month over month seasonally adjusted and up 2.53 percent year over year unadjusted.
- General merchandise stores were up 0.28 percent month over month seasonally adjusted and up 1.94 percent year over year unadjusted.
- Electronics and appliance stores were down 0.95 percent month over month seasonally adjusted and down 2.54 percent year over year unadjusted.
- Furniture and home furnishings stores were down 0.17 percent month over month seasonally adjusted and down 2.57 percent year over year unadjusted.
- Building and garden supply stores were down 1.31 percent month over month seasonally adjusted and down 2.92 percent year over year unadjusted.
- Sporting goods, hobby, music and book stores were down 2.89 percent month over month seasonally adjusted and down 10.78 percent year over year unadjusted.
The Retail Monitor uses anonymized credit and debit card purchase data compiled by Affinity Solutions to pull its totals and does not need to be revised monthly or annually. More information on the Retail Monitors can be found online.
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