Retail sales in the US rose slightly in August, defying economists’ predictions of a decline.
The Commerce Department reported on Tuesday that retail sales ticked up 0.1% for the month, surprising experts who had anticipated a 0.2% drop.
This modest increase suggests that consumer spending, while slower than earlier in the summer, remains resilient and continues to support the overall economy. The revised retail sales figure for July saw a stronger 1.1% increase, up from the initial estimate of 1.0%, adding to the positive outlook for the previous months.
Economists view this data as an encouraging sign for the US economy, as consumers are still making purchases despite high inflation and rising interest rates. Robert Frick, an economist with Navy Federal Credit Union, noted that while consumer spending has slowed, it continues to exceed forecasts. He expects spending to get a further boost when interest rates ease, with a potential cut expected from the Federal Reserve on Wednesday.
August saw spending slow in sectors like gasoline stations, where sales fell 1.2% due to a drop in gas prices, as well as in electronics, restaurants, and furniture stores. However, sectors such as online retail, health, and personal care stores experienced an uptick in sales, contributing to the overall growth.
On a year-over-year basis, retail sales were up 2.1% in August, with total sales for the summer months of June through August growing 2.3% compared to the same period last year. Nonstore retailers led the way with a significant 7.8% increase in sales over the past year, while food services and drinking places saw a 2.7% rise.
With input from the Hill, New York Post, Seeking Alpha, Axios.
