Consumer Behavior

Delta variant a big snag in retail sales

Photo by istock.com

August 18, 2021

The Delta coronavirus variant is cited as a main driver for retail sales dipping in July lower than industry analysts expected.

July retail sales declined 1.1%, much more than the 0.3% expected, according to a CNBC report.

Decreased purchases for cars and car parts as well as apparel and sporting goods were prime factors.

On the positive site foodservice and bars saw gains, according to the report, which cited Commerce Department data.

"Although retail sales fell in July, the outlook for consumer spending remains positive," Gus Faucher, chief U.S. economist at PNC, told the news outlet. "However, spending growth will shift from goods to services over the next couple of years, limiting growth in most categories of retail sales."

But while July retail sales dipped, the $617.7 billion in sales reflected a 15.8% increase compared to a year ago.