Retail Sales a Mixed Bag in August

U.S. retail and foods services sales in August were up by 0.2% over the month, while the figure for July was revised up slightly from 0.6% to 0.7%. Core retail sales, which do not include autos, gasoline and building supply centers, rose by 0.5%.

Sales were stronger in most major retail categories last month. American consumers spent more of their income on new cars, appliances and electronic gadgets. Households increased spending at grocery and big box stores. They  also ate out more and shopped for clothes and back-to-school supplies. Meanwhile, consumers spent less at home furnishings stores, home and garden supply centers, and gasoline stations.

On a year-over-year basis, total retail sales in August were up by 2.2%. Most major sectors are reporting year-over-year gains with the exception of electronics and appliance stores (-2.5%), department stores (-1.9%) and gasoline stations (-17.2%), primarily because of declining prices (retail sales are not adjusted for prices changes). The biggest winners over the year have been restaurants and bars (8.2%), nonstore retailers, primarily e-commerce (6.9%); the catch-all category sporting goods, hobby, book and music stores (6.1%); and motor vehicles (5.7%).

Retail sales in August were slightly below expectations, but the three-month annualized rate was up by more than five percent. Sustained gains in the labor market, lower gasoline prices, rising consumer credit and record levels of household wealth should continue to provide a lift for consumer spending, the major driver of U.S. economic growth.  

Source:  http://www.census.gov/retail/marts/www/marts_current.pdf