Retail sales increased again in August as consumer demand and easing inflation overcame slower job growth, the latest CNBC/NRF Retail Monitor reports. Total retail sales, excluding automobiles and gasoline, were up 0.45% seasonally adjusted month over month and up 2.11% unadjusted year over year in August, according to the Retail Monitor. That compared with increases of 0.74% month over month and 0.92% year over year in July.
“Retail sales data shows that consumers continued to spend on household priorities in August,” National Retail Federation President and CEO Matthew Shay said. “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.”
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.
Unlike survey-based numbers collected by the U.S. Census Bureau, the Retail Monitor uses actual, anonymized credit and debit card purchase data compiled by Affinity Solutions and does not need to be revised monthly or annually.
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