American consumers’ willingness to spend overcame inflation again in August as more jobs and higher wages helped ease some of the pressure of continuing high prices, the National Retail Federation (NRF) said.
Matthew Shay, President and CEO, NRF, said “August retail sales show consumers’ resiliency to spend on household priorities despite persistent inflation and rising interest rates. As we gear up for the holiday season, consumers are seeking value to make their dollars stretch. Retailers have been hard at work managing their supply chains and holiday inventories to provide consumers with great products, competitive prices and convenience at every opportunity.”
The U.S. Census Bureau said overall retail sales in August were up 0.3% from July and up 9.1% year over year. That compared with a month-over-month decline of 0.4% and a year-over-year increase of 10.1% in July. On a three-month moving average, sales were up 9.3% year over year.
Jack Kleinhenz, NRF Chief Economist, said, “Household spending remains steady even as costs continue to rise. Consumers continuing to spend more each month points to the benefits of strong job and wage growth and their use of pandemic savings to help handle persistent elevated prices. Consumers are showing their toughness, but they have limited options and cannot continue if prices do not begin to soften. This retail sales report comes amid mixed signals from the broader economy that show the headwinds against the consumer are strengthening.”