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Despite the state of the job economy, consumers in August

Published: September 18, 2024
Author: HFT

Despite a sluggish labor market that is anticipated to lead to a reduction in interest rates by the Fed this month, total retail sales increased in August.

According to the most recent CNBC/National Retail Federation (NRF) Retail Monitor, job growth remained modest in August, but increased consumer demand and reducing inflation helped overcome the obstacle.

The president and CEO of the NRF, Matthew Shay, stated that “retail sales data shows that consumers continued to spend on household priorities in August.” This is in spite of the labor market’s slowdown, which is predicted to lead to the Fed’s ultimate interest rate reduction in September. The unemployment rate is close to all-time lows, and further wage and employment growth, along with decreased inflation, should keep consumers well-positioned moving into the Christmas season. While they won’t spur the economy right away, lower interest rates should stabilize it over term.

According to the Retail Monitor, August saw increases in total retail sales of 2.11 percent year over year and 0.45 percent seasonally adjusted month over month, excluding fuel and autos. In July, there were rises of 0.92 percent year over year and 0.74 percent month over month.

August’s core retail sales, which do not include restaurants, cars, or gas, increased by 0.17 percent month over month and 1.93 percent year over year according to Retail Monitor data. This contrasted with rises in July of 1.69 percent year over year and 0.95 percent month over month.

For the first eight months of the year, core sales increased by 2.33 percent while total sales increased by 2.08 percent.

Annually, August sales increased in five of the nine retail categories, with online sales, apparel and accessory stores, and health and personal care stores leading the way. Monthly sales increases were also observed in five categories. Details from important sectors consist of:

  • Seasonally adjusted monthly sales from online and other non-store sources increased by 1.49 percent, while unadjusted sales increased by 17.03 percent year over year.
  • Seasonally adjusted, clothing and accessory stores had a 2.13 percent month-over-month increase and a 11.44 percent year-over-year increase.
  • Stores selling health and personal care products had increases of 6.69 percent year over year and 0.28 percent month over month when seasonally adjusted.
  • Stores selling groceries and beverages saw increases of 2.53 percent year over year without seasoning and 0.86 percent month over month.
  • Seasonally adjusted, general merchandise stores increased by 0.28 percent month over month and by 1.94 percent year over year.
  • Seasonally adjusted monthly sales of electronics and appliances down by 0.95 percent, while year-over-year sales without adjustments decreased by 2.54 percent.
  • Seasonally adjusted, furniture and home furnishings stores had a 0.17 percent month-over-month decline and a 2.57 percent year-over-year decline.
  • Seasonally adjusted, building and garden supply retailers had a 1.31 percent month-over-month decline and a 2.92 percent year-over-year decline.
  • Sporting goods, hobby, music, and book stores saw monthly seasonally adjusted declines of 2.89 percent and unadjusted year-over-year declines of 10.78 percent.

The Retail Monitor does not require monthly or annual revisions because it derives its totals from anonymised credit and debit card purchase data collected by Affinity Solutions. You may find more details about the Retail Monitors on the internet.

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