Shoppers keep spending in check in August

Retail sales fell more than expected in August after a strong June and a relatively flat July.



The National Retail Federation said that retail sales, excluding automobiles, gasoline stations and restaurants, were down 0.3% over July. On a year-over-year basis, however, NRF calculates that retail sales increased 4.1%.



The slowdown in August was broad-based and, notably, there was a drop-off in non-store sales, NRF noted. Clothing sales increased 0.7% in August, driven by back-to-school shopping.



“The pattern of summer slowing was evident last year and that is what we’re seeing again this year,” said NRF chief economist Jack Kleinhenz. “Despite this drop off, other indicators suggest that this is a temporary dip and that consumers will remain a driving force in the U.S. economy. Last month’s data may also reflect a drag from ongoing retail price declines that have affected the industry for several years. Rising incomes and steady employment gains should provide the fuel for spending as we look ahead to the holiday season.”



Here is how specific sectors fared in August:



• Online and other non-store sales decreased 0.3% seasonally adjusted over the previous month.

• Sales at clothing and accessories stores increased 0.7%.

• Sales at general merchandise stores were flat.

• Electronics and appliances stores’ sales increased 0.1%.

• Furniture and home furnishings stores’ sales decreased 0.7%.

• Sales at building materials and supplies stores decreased 1.4% over the previous month.

• Sporting goods stores’ sales decreased 1.4%.

• Sales at health and personal care stores decreased 0.1%.