Consumer Behavior

August retail sales grew despite slowing economy

Adobe Stock.

September 20, 2023

Retail sales grew in August, likely prompted by back-to-school shopping, despite interest rates staying high and continuing inflation, according to the National Retail Federation.

"August retail sales show that consumers remain steadfast in the face of continued inflation and higher interest rates," NRF President and CEO Matthew Shay said in a press release. "Consumers are focused on household priorities, as evident by spending this back-to-school season. Entering the fall, we expect moderate growth to continue despite uncertainties like the direction of inflation and interest rates as well as a potential government shutdown."

The U.S. Census Bureau reported overall retail sales in August were up 0.6% from July and up 2.5% year over year. That compared with increases of 0.5% month over month and 2.6% year over year in July.

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% seasonally adjusted from July and up 3.3% unadjusted year over year. In July, sales were up 0.7% month over month and also up 3.3% year over year. NRF's numbers were up 3.2% unadjusted year over year on a three-month moving average as of August and up 3.8% for the first eight months of the year.

August sales were up in five out of nine retail categories on a yearly basis. Specifics from key sectors include:

• Health and personal care stores were up 0.5% month over month seasonally adjusted and up 7.8% unadjusted year over year.
• Online and other non-store sales were unchanged month over month seasonally adjusted but up 7.6% unadjusted year over year.
• Clothing and clothing accessory stores were up 0.9% month over month seasonally adjusted and up 3.6% unadjusted year over year.
• General merchandise stores were up 0.3% month over month seasonally adjusted and up 3% unadjusted year over year.
• Grocery and beverage stores were up 0.4% month over month seasonally adjusted and up 2.8% unadjusted year over year.
• Electronics and appliance stores were up 0.7% month over month seasonally adjusted but down 1.6% unadjusted year over year.
• Sporting goods stores were down 1.6% month over month seasonally adjusted and also down 1.6% unadjusted year over year.
• Building materials and garden supply stores were up 0.1% month over month seasonally adjusted but down 3.8% unadjusted year over year.
• Furniture and home furnishings stores were down 1% month over month seasonally adjusted and down 7.6% unadjusted year over year.