While growth slowed compared to previous months, the resilience of the American consumer remains evident, said Jack Kleinhenz, chief economist at the National Retail Federation (NRF).
“These numbers show the continued resiliency of the American consumer,” he explained. “While sales growth decelerated from last month’s pace, there is little hint of consumer spending unravelling.”
Recent wage gains have outpaced inflation, giving households the foundation to continue spending, despite slower payroll growth in July and August.
Kleinhenz pointed out that easing inflation has provided shoppers with more capacity to spend, and anticipated interest rate cuts from the Federal Reserve could create an even more positive environment for consumers.
According to the Census Bureau, overall retail sales in August were up 0.1% month over month on a seasonally adjusted basis and 2.1% year over year. This compares to the stronger growth seen in July, with sales up 1.1% month over month and 2.9% year over year.
Core retail sales, a measure defined by the NRF that excludes sectors such as automobile dealers, gasoline stations, and restaurants, rose by 0.3% seasonally adjusted month over month and 3.3% unadjusted year over year.
For the first eight months of 2024, core retail sales have increased 3.4% yearly, aligning with the NRF’s forecast for annual growth between 2.5% and 3.5%.
Additionally, the CNBC/NRF Retail Monitor, powered by Affinity Solutions, reported core retail sales were up 0.17% seasonally adjusted month over month in August and 1.93% year over year.
