Retail sales in the United States continued to rise in August, driven by stronger consumer demand as inflation eased and unemployment levels remained low.
According to data released by the US Census Bureau on Tuesday, revenue increased by 0.1% compared to the previous month, reaching $710.8 billion. This follows a 1.1% increase in July, bringing total sales to $710.4 billion. The back-to-school and back-to-work shopping periods contributed to the boost in consumer spending.
The National Retail Federation (NRF) noted that the rise in retail sales was fueled by the combination of lower inflation and steady consumer demand, despite slower job growth. “Retail sales increased again in August as consumer demand and easing inflation overcame slower job growth,” the NRF stated.
Matthew Shay, CEO of the NRF, added, “Even with slower employment growth, unemployment is near historic lows. Ongoing job and wage gains, along with lower inflation, should keep consumers in a strong position as we head into the holiday season.”
On a year-over-year basis, sales grew by 2% in August, compared to a 0.9% annual increase in July. Total retail sales for the first eight months of the year rose 2.1% compared to the same period in 2023.
Out of the nine retail categories monitored by the NRF, sales grew in five of them, a slight decline from six in July. The clothing and accessories sector, which includes jewelry, saw a 2.1% rise from July and an 11% increase compared to August 2023. Online sales experienced the highest year-on-year growth, surging by 17%, while sectors such as electronics, furniture, building supplies, and sporting goods saw declines.
As inflation continues to ease and consumer spending remains resilient, retailers are optimistic about the upcoming holiday shopping season.
