[Epoch Times, September 15, 2022](Epoch Times reporter Li Xin comprehensive report) The U.S. Census Bureau (USCB) reported on Thursday (September 15) that retail sales in August were better than expected, as many industries Higher prices offset a sharp drop in gas station revenues.
Retail sales rose 0.3% in August from July, better than estimates by Dow Jones & Company and Refinitiv for no change, according to the Commerce Department’s advance monthly report. The figure was not adjusted for inflation, while inflation rose 0.1% month-on-month in August, suggesting spending growth outpaced price growth.
While retail sales are a measure of how much consumers spend on a variety of everyday goods such as cars, food and gasoline, rising inflation means consumers may be spending the same amount of money but buying less.
Inflation, as measured by the consumer price index, rose 8.3% over the past year through August, while retail sales rose 9.3%.
The August figure was an improvement from a downwardly revised July figure, which showed retail sales actually fell 0.4%.
Excluding cars, however, sales fell 0.3% for the month, missing expectations for a 0.1% increase. Excluding both cars and gasoline, sales rose 0.3%.
Sales at dealers of cars and their parts led all categories, rising 2.8%, helping offset a 4.2% decline at gas stations, whose revenues slumped as prices fell sharply.
Online sales also fell 0.7%, while sales at bars and restaurants rose 1.1%.
“Higher inflation drove the top sales numbers, but sales clearly It’s going down because, as it stands, sales (growth) are negative.”
“As mentioned earlier, core retail sales were well below expectations, which will lead to a downward revision of the third-quarter gross domestic product (GDP) estimate,” he added.
In its most aggressive response to the inflation crisis in decades, the Fed approved two consecutive 75-basis-point rate hikes in June and July and said it would raise rates by another 75-basis point in September.
Rising interest rates could force consumers to cut back on spending.
The U.S. Census Bureau released its advance monthly report on retail sales for August on Thursday. The official report will be released on the 15th of next month, and these figures may be slightly adjusted.
Responsible editor: Li Yuan#