NRF and Commerce data points to retail sales growth in August

United States retail sales saw sequential and annual gains in August, according to data issued today by the United States Department of Commerce and the National Retail Federation (NRF).

Commerce reported that August retail sales—at $683.3 billion—rose 0.3% compared to July, while posting a 9.1% annual increase, amid ongoing 40-year highs for inflation. And total retail sales, June through August, saw a 9.3% annual gain.

Retail trade sales rose 0.2% from July to August and were up 8.9% annually, and gasoline stations sales headed up 29.3% for the same period. Non-store retailers, which includes e-commerce sales, posted an 11.2% annual gain. 

NRF said that in its calculation of retail sales, which excludes automobile dealers, gasoline stations, and restaurants, to focus on core retail, pointed to August retail sales increasing 0.1% over July and up 8% on an unadjusted basis annually.  NRF also noted that its numbers rose 7.3% on an unadjusted basis on a three-month moving average through August, with retail sales up 7.5% annually through the eight months of 2022, leaving its 2022 estimate of 6%-to-8% annual growth intact.

“Household spending remains steady even as costs continue to rise,” NRF Chief Economist Jack Kleinhenz said in a statement. “Consumers continuing to spend more each month points to the benefits of strong job and wage growth and their use of pandemic savings to help handle persistent elevated prices. Consumers are showing their toughness, but they have limited options and cannot continue if prices do not begin to soften. This retail sales report comes amid mixed signals from the broader economy that show the headwinds against the consumer are strengthening.”

NRF pointed to gains for all the retail segments it tracks except one, electronics sales, which fell 0.1% compared to July on a seasonally adjusted basis and also down 5.2% unadjusted annually.

August retail sales gains were seen for the following sectors by NRF:
-Building materials and garden supply stores were up 1.1% month over month seasonally adjusted and up 13.4% unadjusted year over year;
-Online and other non-store sales were down 0.7% month over month seasonally adjusted but up 12.3% unadjusted year over year;
-Grocery and beverage stores were up 0.5% month over month seasonally adjusted and up 8% unadjusted year over year;
-Sporting goods stores were up 0.5% month over month seasonally adjusted and up 7.1% unadjusted year over year;
-Clothing and clothing accessory stores were up 0.4% month over month seasonally adjusted and up 3.7% unadjusted year over year;
-Health and personal care stores were down 0.6% month over month seasonally adjusted but up 3.7% unadjusted year over year;
-General merchandise stores were up 0.5% month over month seasonally adjusted and up 3.2% unadjusted year over year; and
-Furniture and home furnishings stores were down 1.3% month over month seasonally adjusted but up 0.1% unadjusted year over year