Consumers Spending More, But Cautiously
Stephen E. Schatz reports in an article for National Retail Federation that retail sales edged higher for the month of July than was expected, breaking a consecutive three-month period of declining sales. Consumer confidence appears to be improving, but still cautious. July retail sales showed an increase of 0.8 percent seasonally adjusted from June and 1.2 percent unadjusted year-over-year. This excludes, however, automobile, gas station and restaurant sales
Total retail and food services sales (which include automobile, gas station and restaurant sales) increased 0.8 percent seasonally adjusted month-to-month and 4.1 percent adjusted year-over-year. Continued modest growth is expected in the fall and winter.
The July sales report also showed the following:
Clothing and clothing accessories stores’ sales – increase of 0.8 percent seasonally adjusted month-to-month, 2.6 percent unadjusted year-over-year.
Electronics and appliance stores’ sales – increase of 0.9 percent seasonally adjusted month-to-month, decrease of 1.1 percent unadjusted year-over-year.
Furniture and home furnishing stores’ sales – increase of 1.1 percent seasonally adjusted month-to-month, 9.0 percent unadjusted year-over-year.
General merchandise stores’ sales – increase of 0.7 percent seasonally-adjusted month-to-month, decrease of 1.4 percent unadjusted year-over-year.
Health and personal care stores’ sales – increase of 1.1 percent seasonally-adjusted month-to-month, 0.7 percent unadjusted year-over-year.
Sporting goods, hobby, book and music stores’ sales – increase of 1.6 percent seasonally-adjusted month-to-month, 8.0 percent unadjusted year-over-year.
Positive signs that consumers are spending are being seen half-way through the back-to-school season. Sustained retail growth, however, will depend on the nation’s continuing economic recovery.