US retail sales increased during August as consumer demand outweighed the pandemic, supply chain disruptions, and other factors affecting spending, the National Retail Federation (NRF) reported.
“The increase in August retail sales reflects the continued strength of the American consumer and the resilience of our nation’s retailers,” NRF President and CEO Matthew Shay said.
“In spite of the ongoing challenges of the global pandemic, concerns about the delta variant, and supply chain and workforce constraints, the retail industry continues to do what it does best – serve customers and support communities while keeping team members and associates safe and healthy. We maintain our confidence in the historic strength of consumers and fully expect a record year for retail sales and a strong holiday season for retailers.”
“Retail sales in August overcame unusual twists and turns that have affected shopping behavior both in terms of the timing and composition of sales,” NRF Chief Economist Jack Kleinhenz said. “The consumer remains rock solid despite the trifecta of macroeconomic headwinds we’ve seen this year, including tapering off of government stimulus, elevated Covid-19 infections and ongoing supply chain challenges in the form of shortages of labor and goods. Higher sales came even with a disjointed back-to-school season that also affected the timing of sales as many school districts returned to in-person learning but some delayed classes until after Labor Day. These results pave the way for sturdy consumer spending and a strong economy in the fourth quarter.” The U.S. Census Bureau said overall retail sales in August were up 0.7% seasonally adjusted from July and up 15.1% year-over-year. That compares with a decline of 1.8% month-over-month and an increase of 15.1% year-over-year in July. Despite occasional month-over-month declines, sales have grown year-over-year every month since June 2020, according to Census data.