The Census Bureau reported that retail sales in the U.S. rose more than expected in August, the biggest gain in five months, due largely to higher sales of gasoline and food.
Retail sales rose 0.4 percent in August after a gain of 0.3 percent in July, the latest figure topping expectations for a 0.3 percent increase. Excluding automobile sales, the main factor in July’s overall gain, sales were up 0.6 percent in August, also better than expected.
Gasoline station sales rose 1.9 percent, the biggest increase for any sector, and excluding both autos and gasoline, sales rose 0.5 percent in August after a decline of 0.1 percent in July. Food and beverage sales rose 1.3 percent, clothing sales rose 1.2 percent, and sporting goods were up 0.9 percent while auto sales and electronics store sales fell 1.1 percent.
Here’s another way to look at how retail sales have fared, removing some of the volatility of the last few years by looking at the six month rolling average of the monthly change.
Surprisingly, when measured this way, sales are now back to their 10-year average increase of about 0.3 percent per month as indicated by the blue dashed line. While these figures are not adjusted for either inflation or the rising population, recent data does show that the American consumer is not dead yet.
