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Retail sales in August were up 0.1% to $710.8 billion from July, while jumping 2.3% year over year, according to Census Bureau data, getting a boost from e-commerce sales. The month over month increase was an unexpected gain, with economists anticipating a 0.2% dip from July, per Bloomberg.
While a deceleration from the 1.1% monthly boost seen in July, “there is little hint of consumer spending unraveling,” National Retail Federation Chief Economist Jack Kleinhenz said in a statement.
“Households have the underpinnings to spend as recent wage gains have outpaced inflation even though payroll growth saw a slowdown in July and August,” he said, noting that cooling inflation and the Fed’s interest rate cut could help future consumer spend.
Consumer prices, meanwhile, rose 0.2% in August and 2.5% annually, the lowest rate since February 2021, per the Consumer Price Index released last week.
Category close-up: Online retail sales were up 1.4% in August and 7.8% year over year. Online grocery sales, meanwhile, rose 7% year over year to $9.9 billion, per a Brick Meets Click/Mercatus Grocery Shopper Survey released this week, boosted by 10.2% sales gains in delivery.
Miscellaneous store retailers, which includes specialty retailers, saw a 1.7% monthly bump and 10.7% annual increase, the largest gain of the 13 categories the Census Bureau tracks.
Health and personal care stores saw a 0.7% sales gain in August and a 3.5% annual boost. Clothing and accessories stores sales dipped 0.7% monthly, up 1% annually. Sporting goods, hobby, musical instrument, and book stores secured a 0.3% gain in August but 3.6% drop from a year ago. General merchandise stores were down 0.3% for the month and 2.1% annually, with department store sales down 1.1% monthly and 2.1% annually.
Claire Tassin, retail and e-commerce analyst at Morning Consult, said in an emailed statement that August’s numbers reflect “continued strength in consumer spending across the summer,” emphasizing the strength of the miscellaneous store category and e-commerce.
“Consumers are still worn down from inflation but they’re continuing to spend, particularly at value-oriented retailers,” she said.