Retail sales in the United States experienced a minor decline in September compared to the previous month, according to the latest data from the CNBC/NRF Retail Monitor.
Despite this, consumers continued to spend more than they did at the same time last year, as inflation and interest rates eased and employment remained strong.
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Monthly sales dip amid uncertainty
In September, overall retail sales—excluding automobiles and gasoline—fell by 0.32% on a seasonally adjusted basis from August.
This marks the first decline since January, reflecting a cautious approach from shoppers in a month traditionally known for slower retail activity. However, compared to the same period in 2023, sales were still up by 0.55%.
The core retail sales measure, which excludes restaurants, vehicle dealers, and fuel stations, dropped by 0.28% month over month, but saw a 0.94% increase compared to last year.
This follows a relatively stronger performance in August, which saw month-over-month gains of 0.45% for total sales and 0.17% for core sales.
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By GlobalDataAnnual gains persist despite softening demand
Though monthly sales showed signs of slowing, the data highlighted a stronger long-term trend.
For the first nine months of 2024, total retail sales rose by 1.91% compared to the same period last year, while core retail sales were up by 2.18%. This points to sustained consumer spending despite various economic uncertainties.
Factors such as geopolitical tensions, upcoming elections, and concerns about potential strikes at key US ports may have contributed to the cautious spending behaviour observed in September.
Inflation in services also remained a challenge for many consumers, according to experts from the National Retail Federation (NRF).
Sector-specific trends emerge
Looking at specific retail categories, five out of nine sectors posted year-over-year growth in September, with online sales, clothing, and health-related products leading the way.
Online and non-store sales surged by 15.21% compared to September 2023, while clothing and accessories stores saw a 10.31% increase. Health and personal care stores posted a 4.82% rise in yearly sales.
On a monthly basis, sales increased in three categories: online sales rose by 1.59%, clothing and accessories grew by 1.06%, and health and personal care sales showed a modest 0.04% uptick.
In contrast, sectors like electronics, building supplies, and furniture continued to struggle, with notable declines both month over month and year over year.
The data, compiled from anonymised credit and debit card transactions, offers a snapshot of consumer spending patterns, with the NRF continuing to monitor trends closely as the US approaches the holiday shopping season.
