The CNBC/NRF Retail Monitor revealed a modest month-over-month growth in U.S. retail sales. However, an intriguing year-over-year dip has caught the attention of analysts, attributed to the shifted timing of Easter and a reduction in weekend days.
Matthew Shay, the NRF President and CEO, highlighted the continued influence of consumer spending on economic expansion, despite a noticeable moderation. “Consumer spending continues to drive economic growth and retail sales increases, though we see some moderation in spending as consumers continually search for value.”
“The ability to spend is supported by a growing job market and real gains in wages. Overall inflation remains stubborn because of elevated prices for services, while inflation for goods has dropped to nearly zero. Consumers remain focused on value and price and are shifting their spending patterns where needed to make ends meet.”
The Retail Monitor’s data paints a nuanced picture: Excluding automobiles and gasoline, retail sales rose by 0.26% month over month but saw a 0.6% decline year over year.
Core retail sales, which further exclude restaurants, showed a 0.4% monthly increase but remained virtually flat compared to the previous year, with a marginal 0.05% decrease.