News

August retail sales increased 0.5 percent

When combined with revisions to July, August sales indicate a consistent improvement in consumer confidence and spending but run contrary to August's lackluster jobs report.

September 12, 2014

The National Retail Federation calculates that August retail sales — excluding automobiles, gasoline stations and restaurants — increased 0.5 percent seasonally adjusted month-to-month and 2.7 percent unadjusted year-over-year. When combined with revisions to July, August sales indicate a consistent improvement in consumer confidence and spending but run contrary to August's lackluster jobs report. NRF said it fully anticipates upward revisions in employment and payroll numbers next month.

"The rise in consumer confidence, labor markets and retail sales is encouraging," NRF Chief Economist Jack Kleinhenz said in a statement. "August sales figures signal that consumers are willing and ready to spend as the economy improves. However, until the pace of income picks up, we should not expect a sustained surge in spending."

All retail categories improved over the previous month with the exception of general merchandise stores. Even though year-over-year sales slowed from 4.2 to 2.6 percent, "by-and-large merchants had a strong finish to the back-to-school season, especially those selling clothing and electronics," Kleinhenz said. "My overall impression is that the economy is moving in the right direction, but that other factors, including rising concerns over the uncertainty in the Middle East, may produce some drag. We remain hopeful but cautious."

Additional findings from NRF's retail sales analysis include:

Building material and garden equipment and supplies dealers:

• +1.4 percent month-to-month
• +3.3 percent year-over-year

Clothing and clothing accessories stores:

• +0.3 percent month-to-month
• +1.0 percent year-over-year

Electronics and appliance stores:

• +0.7 percent month-to-month
• +0.5 percent year-over-year

Furniture and home furnishing stores:

• +0.7 percent month-to-month
• +0.7 percent year-over-year

General merchandise stores:

• -0.1 percent month-to-month
• +1.8 percent year-over-year

Health and personal care stores:

• +0.6 percent month-to-month
• +6.4 percent year-over-year

Nonstore (online) retailers:

• +0.1 percent month-to-month
• +4.2 percent year-over-year

Sporting goods, hobby, book and music stores:

• +0.9 percent month-to-month
• -4.1 percent year-over-year