Retail sales unexpectedly rise as back-to-school shopping provides lift
Retail sales rose 0.7% last month
Strategic Resource Group managing director Burt Flickinger on the supply chain and employment issues facing the retail industry in the U.S.
Consumer spending unexpectedly accelerated in August as back-to-school shopping bolstered sales.
Retail sales, a measure of spending at restaurants, stores and online, last month rose 0.7% to $618.7 billion, according to the Commerce Department. Analysts surveyed by Refinitiv had expected a 0.8% decline. The reading was 15.1% above year-ago levels.
Last month’s print was revised down to a drop of 1.8% from a 1.1% decline.
"Consumers have continued to spend robustly even after the stimulus sugar-high has worn off," said Ted Rossman, senior industry analyst at Bankrate. "That’s a good sign for the economy."
Clothing and clothing accessories sales rose 3.3% month over month and were 38.3% above year-ago levels. Gasoline sales jumped 1.6% compared to July.
Retail sales excluding autos jumped 1.8% month over month compared with the 0.1% decline that was anticipated. Auto sales declined 3.6% last month.
While the headline number was strong, the breakdown within the report suggested some hesitation due to the COVID-19 delta variant.
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Nonstore spending increased 5.3% and food and beverage store sales rose 1.8%, "perhaps reflecting Delta-driven fears pushing consumers back to shopping from and eating at home," said Michael Pearce, senior U.S. economist at Capital Economics.