Retail resilience

Consumer spending is holding up well in the US with retail sales increasing 0.7% in July compared to June to a total of USD 703 billion. Retail sales increased 3.2% compared to last year. The figures are not adjusted for inflation. Since February of this year retail sales growth was below inflation indicating sales volumes decreased. However, in July, inflation and retail sales growth were close to equal which could mean sales volumes have stabilized i.e., consumers are buying a similar amount of stuff. Where are they spending? Retail sales increased 10.3% while food & drinks places experienced 11.9% growth. Sales in furniture and electronics stores declined 6.3% and 3.1%, respectively. Department stores – the perpetual losers – lost 3.4% of sales.

Source: US Commerce Department, August 2023.