Retail sales rise in August as tariffs impact prices and pull-forward purchasing intent

[Prince Frederick, Maryland USA]
Alexander Farnsworth

Retail spending continued to grow in August as consumers showed resiliency.

Total retail sales were up 0.5% seasonally adjusted month over month and up 6.8% unadjusted year over year in August after excluding automobile and gas sales, according to the National Retail Federation. Those marks compared with increases of 1.5% month over month and 5.9% year over year in July.

Total sales were up 5.1% year over year for the first eight months of the year, and core sales were up 5.3%.

"Consumer spending rose again in August, fueled by a still-stable consumer and a robust back-to-school shopping season," stated National Retail Federation CEO Matthew Shay. "Spending was supported by lower fuel costs, tax-free holidays and consumers buying products before tariff increases take effect. We may be seeing inflationary impacts from tariffs since recent data shows price increases in commodity goods," added Shay.

August sales were up in all but one out of nine categories on a yearly basis, led by digital products, sporting goods stores, and clothing stores, and were up in five out of nine categories on a monthly basis.

Digital products (such as electronic books and games) were up 1.6% month over month seasonally adjusted in August and up 26.0% year over year unadjusted.

General merchandise stores were up 0.4% month over month seasonally adjusted and up 7.6% year over year unadjusted.

Grocery and beverage stores were up 1.00% month over month seasonally adjusted and up 7.2% year over year unadjusted.

Electronics and appliance stores were down 0.3% month over month seasonally adjusted but up 3.6% year over year unadjusted.

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