The U.S. Census Bureau said overall retail sales in September were up 0.7 percent from August and up 3.8 percent year-over-year. The National Retail Federation (NRF) said the gains have moderated as consumers face continued pressures from the slowed economy.

The U.S. Census Bureau figures for September compared with increases of 0.8 percent month-over-month and 2.9 percent year-over-year in August.

“September retail sales show that consumers have retained the ability and willingness to spend despite accumulating economic headwinds from higher interest rates and slowing growth,” NRF President and CEO Matthew Shay said. “As we gear up for the holiday season, we expect moderate growth to continue as consumers focus on value and household priorities. Retailers have been hard at work getting holiday inventories in place to provide consumers with great products, competitive prices and convenience at every opportunity.”

“The consumer is still healthy, and today’s report shows households are forging ahead with plenty of buying power despite persistent inflation, rising interest rates and geopolitical conflicts,” NRF Chief Economist Jack Kleinhenz said. “Firm payroll growth over the past few months has likely helped spending across retail sectors. However, much of the rise was due to car sales, gasoline prices and food services. When you exclude those categories and look at core retail as measured by NRF, the pace of year-over-year growth is slowing.”

NRF’s calculation of retail sales, which excludes auto dealers, gas stations and restaurants to focus on core retail, showed September was up 0.5 percent seasonally adjusted from August and up 2.2 percent unadjusted year-over-year. In August, sales were up 0.2 percent month-over-month and up 3.6 percent year-over-year.

NRF’s numbers were up 3.1 percent unadjusted year-over-year on a three-month moving average as of September and up 3.7 percent for the first nine months of the year.

On a yearly basis, September sales were up in five out of nine retail categories, led by health and personal care stores, online sales and general merchandise stores, and up or unchanged in all but three categories on a monthly basis. 

Key sector specifics include:

  • Sporting Goods Stores were unchanged month-over-month, seasonally adjusted, but down 1.6 percent unadjusted year-over-year.
  • Clothing and Clothing Accessory Stores were down 0.8 percent month-over-month, seasonally adjusted, but up 0.8 percent unadjusted year-over-year.
  • Online and other non-store sales were up 1.1 percent month-over-month, seasonally adjusted, and up 6.2 percent unadjusted year-over-year.
  • General merchandise stores were up 0.4 percent month-over-month, seasonally adjusted, and up 3 percent unadjusted year-over-year.
  • Electronics and appliance stores were down 0.8 percent month-over-month, seasonally adjusted, and down 2.5 percent unadjusted year-over-year.
  • Health and personal care stores were up 0.8 percent month-over-month seasonally adjusted and up 7.3 percent unadjusted year-over-year.
  • Grocery and beverage stores were up 0.4 percent month-over-month, seasonally adjusted and up 2.1 percent unadjusted year-over-year.
  • Furniture and home furnishings stores were unchanged month-over-month, seasonally adjusted, but down 6.5 percent unadjusted year-over-year.
  • Building materials and garden supply stores were down 0.2 percent month-over-month, seasonally adjusted, and down 6.5 percent unadjusted year-over-year.

Photo courtesy Bloomberg