Sept. 20, 2023 — According to the National Retail Federation (NRF), retail sales rose in August despite continued inflation and high interest rates, potentially driven by the back-to-school season.
 
The back-to-school season showed consumers are focused on household priorities, says NRF president and CEO Matthew Shay, who expects growth to continue throughout the fall.
 
NRF chief economist Jack Kleinhenz attributes the slowed pace of spending to consumers being selective and price-sensitive while remaining active. “Households have the capacity to spend, but momentum is slowing, in part because savings built up during the pandemic are running lower and credit costs are rising. Consumer spending growth has slowed but there is little hint of any sudden collapse,” he says.
 
According to the U.S. Census Bureau, overall retail sales in August grew 0.6% from July and up 2.5% compared to last year. In July, retail sales were up 0.5% from June and up 2.6% compared to 2022.
 
NRF’s calculation of retail sales—which excludes auto dealers, gas stations, and restaurants—showed August up 0.1% seasonally adjusted from July and up 3.3% unadjusted compared to last year. July’s numbers were up 0.7% from June and up 3.3% compared to 2022. On a three-month moving average as of August, numbers were up 3.2% unadjusted compared to 2022. For the first eight months of the year, sales were up 3.8%.
 
August sales were up in five out of NRF’s nine retail categories on a yearly basis. On a monthly basis, sales were up in all but two. Here are some specifics from key sectors seasonally adjusted from last month and unadjusted from August 2022:
 

• Health and personal care stores were up 0.5% from July and up 7.8% compared to last year.
• Online and other non-store sales were unchanged from July but up 7.6% compared to last year.
• Clothing and clothing accessory stores were up 0.9% from July and up 3.6% compared to last year.
• General merchandise stores were up 0.3% from July and up 3% compared to last year.
• Grocery and beverage stores were up 0.4% from July and up 2.8% compared to last year.
• Electronics and appliance stores were up 0.7% from July but down 1.6% compared to last year.
• Sporting goods stores were down 1.6% month over month seasonally adjusted and down 1.6% compared to last year.
• Building materials and garden supply stores were up 0.1% from July but down 3.8% compared to last year.
• Furniture and home furnishings stores were down 1% from July and down 7.6% compared to last year.

 
For more information: nrf.com.