Retail sales rose slightly in August despite a rise in COVID-19 cases and supply chain hurdles, reversing the decline in July, and exceeding expectations for another decline, according to The Hill.
Retail and food services sales totaled $618.7 billion last month, according to data released Thursday by the Commerce Department, up 0.7% after declining 1.8% in July.
Analysts expected retail sales to fall another 0.8% in August, according to estimates, as the delta variable significantly slowed job growth, rattled consumer confidence and created more disruption in supply lines, but increased online shopping and sharp increases in sales in senior Retailers and furniture stores have helped offset declines driven in large part by the forces of the pandemic.
“Retail sales in August outpaced the unusual fluctuations and turns that affected shopping behavior in terms of the timing and composition of sales,” said Jack Kleinens, chief economist at the National Retail Federation, a trade group for retailers.
He continued, “The consumer remains resilient, despite the triple macroeconomic headwinds we have seen this year, including reduced government stimulus, high rates of coronavirus infection and ongoing supply chain challenges in the form of labor and goods shortages.”
Out-of-store retailers' sales rose 5.3% in August after declining 4.6% in July, and sales at general merchandise stores rose 3.5% Furniture sales also rose 3.4% after declining 0.1% in July, and food and beverage stores recorded an increase of 1.8 %.
However, activity fell in many sectors highly vulnerable to the spike in corona cases, the recent shortage of computer chips was exacerbated by shipping delays, and restaurants and bars saw a flat sales streak in August as the sector lost 42,000 jobs, and economists attributed all the setbacks to increased delta infections that It fuels health concerns and pushes people away from personally eating and drinking.
Sales of electronics and home appliances stores fell 3.1% in August, as the backlog of freight drove up prices, and sales of cars and auto parts also dropped 3.6%, likely due to the summer spike in new and used car prices that are slowly declining.
0 Comments