The National Retail Federation stated that although “sales growth decelerated from last month,” “there is little hint of consumer spending unraveling.”
Chief economist Jack Kleinhenz of the National Retail Federation (NRF) says that August retail sales increased due to rising salaries and declining inflation, as revealed by data released today by the U.S. Census Bureau.
According to the Census Bureau, overall retail sales in August increased by 2.1 percent unadjusted year over year and by 0.1 percent seasonally adjusted month over month. This contrasted with rises in July of 2.9 percent year over year and 1.1 percent month over month.
Kleinhenz went on, “These figures demonstrate the American consumer’s ongoing resilience.” “Sales growth slowed from the rate of the previous month, but there is no indication that consumer spending is unraveling. Payroll growth slowed in July and August, but recent salary rises have surpassed inflation, giving households the means to spend. Cost-conscious customers are finding more money to spend thanks to decreasing inflation, and the Federal Reserve’s anticipated interest rate reductions should contribute to improving the future business climate for consumers.
August’s core retail sales, as determined by the NRF using Census data but omitting auto dealers, petrol stations, and eateries, increased by 3.3 percent unadjusted year over year and by 0.3 percent seasonally adjusted month over month.For the first eight months of the year, core retail sales increased by 3.4 percent year over year. This is consistent with the NRF’s projection that retail sales will increase by 2.5 to 3.5 percent in 2024 compared to 2023.
Core retail sales in August were up 1.93 percent year over year and 0.17 percent seasonally adjusted month over month, according to data released last week by Affinity Solutions’ CNBC/NRF Retail Monitor. This contrasted with rises in July of 1.69 percent year over year and 0.95 percent month over month. The Retail Monitor does not require monthly or annual adjustment and uses anonymised credit and debit card purchase data provided by Affinity Solutions, in contrast to survey-based data gathered by the Census Bureau.
