U.S. retail sales continued to grow in September even as consumers faced continuing economic pressures, the National Retail Federation (NRF) said.
Matthew Shay, NRF President and CEO, said, “September retail sales show that consumers have retained the ability and willingness to spend despite accumulating economic headwinds from higher interest rates and slowing growth. As we gear up for the holiday season, we expect moderate growth to continue as consumers focus on value and household priorities. Retailers have been hard at work getting holiday inventories in place to provide consumers with great products, competitive prices and convenience at every opportunity.”
Jack Kleinhenz, NRF Chief Economist, added, “The consumer is still healthy, and today’s report shows households are forging ahead with plenty of buying power despite persistent inflation, rising interest rates and geopolitical conflicts. Firm payroll growth over the past few months has likely helped spending across retail sectors. However, much of the rise was due to car sales, gasoline prices and food services. When you exclude those categories and look at core retail as measured by NRF, the pace of year-over-year growth is slowing.”
The U.S. Census Bureau said overall retail sales in September were up 0.7% from August and up 3.8% year over year. That compared with increases of 0.8% month over month and 2.9% year over year in August.