• U.S. retail sales unexpectedly rise in August

Market news

16 September 2021

U.S. retail sales unexpectedly rise in August

The Commerce Department reported on Thursday the sales at U.S. retailers rose 0.8 percent m-o-m in August, following a revised 1.8 percent m-o-m fall in July (originally a 1.1 percent m-o-m decrease). 

Economists had expected total sales would decline 0.8 percent m-o-m in August.

According to the report, the August increase in retail sales was led by higher sales at nonstore retailers (+5.3 percent m-o-m), furniture stores (+3.7 percent m-o-m), general merchandise stores (+3.5 percent m-o-m) and food and beverages stores (+1.8 percent m-o-m). These gains, however, were partly offset by a decline in sales at motor vehicles and parts dealers (-3.6 percent m-o-m).

Excluding auto, retail sales surged 1.8 percent m-o-m in August after a revised 1.0 percent m-o-m drop in the previous month (originally a 0.4 percent m-o-m fall), being much better than economists’ forecast of a 0.1 percent m-o-m decrease.

Meanwhile, closely watched core retail sales, which exclude automobiles, gasoline, building materials and food services, and are used in GDP calculations, climbed 2.5 percent m-o-m in August after a revised 1.9 percent m-o-m decline in July (originally a 1.0 percent m-o-m drop).

In y-o-y terms, the U.S. retail sales climb 15.1 percent in August after a revised 15.1 percent surge in the previous month (originally an15.8 percent jump).

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