US retail sales in August 2022 steady despite inflation: NRF

The US Census Bureau said overall retail sales in August were up 0.3 per cent from July and up 9.1 per cent year over year (YoY). That compared with a month-over-month decline of 0.4 per cent and a year-over-year increase of 10.1 per cent in July. On a three-month moving average, sales were up 9.3 per cent YoY. 

NRF’s calculation of retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – showed August was up 0.1 per cent from July and up 8 per cent unadjusted YoY. In July, sales were up 0.5 per cent month over month and up 7.2 per cent YoY. 
 
NRF’s numbers were up 7.3 per cent unadjusted YoY on a three-month moving average as of August. Sales were up 7.5 per cent YoY for the first eight months of the year, keeping results on track with NRF’s forecast that 2022 retail sales will grow between 6 per cent and 8 per cent over 2021.

“August retail sales show consumers’ resiliency to spend on household priorities despite persistent inflation and rising interest rates,” said NRF president and CEO Matthew Shay in a press release by the NRF. “As we gear up for the holiday season, consumers are seeking value to make their dollars stretch. Retailers have been hard at work managing their supply chains and holiday inventories to provide consumers with great products, competitive prices, and convenience at every opportunity. We are relieved and cautiously optimistic that the potentially devastating rail strike has been averted, and we appreciate the Biden administration’s intervention on behalf of businesses and consumers. We hope railway workers will accept the new terms of the proposed contract.”

“Household spending remains steady even as costs continue to rise,” said NRF chief Economist Jack Kleinhenz. “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.”  

August sales were up in all but one retail category on a yearly basis, led by building material stores, online sales, and grocery stores, and increased in all but four categories on a monthly basis. Specifics from key sectors include: Online and other non-store sales were down 0.7 per cent month over month seasonally adjusted but up 12.3 per cent unadjusted YoY.

Clothing and clothing accessory stores were up 0.4 per cent month over month seasonally adjusted and up 3.7 per cent unadjusted YoY, added the release.  

Furniture and home furnishings stores were down 1.3 per cent month over month seasonally adjusted but up 0.1 per cent unadjusted YoY.

Fibre2Fashion News Desk (NB)