ARLINGTON, Va.—Total retail sales decreased 0.2% in August, in part due to a decline in online sales, NAFCU Research Assistant Yun Cohen said in a NAFCU Macro Data Flash Report.
Retail sales for the prior two months were also revised downward – July's growth was revised down from 0.6% to 0.3%, while June was revised down from 0.3% growth to a 0.1% decrease.
"Online retailers … were negatively affected as millions lost power and Internet access," Cohen said. "The 1.1% decline was the largest for the sector since April 2014. Auto dealers also took a hit as the hurricane delayed purchases in the area."
However, sales at gasoline stations were boosted by Hurricane Harvey, which temporarily shut down refineries in Texas in late August and caused gas prices to spike, Cohen said.
According to Census Bureau data, year-over-year growth in retail sales was 3.2% in August, down from 3.5% in July. Core retail sales increased 3.3% from a year ago, while auto and gas sales rose 2.8%.
"Overall, Hurricanes Harvey and Irma will likely depress retail sales in the next couple months," Cohen added. "However, rebuilding is expected to give a boost to the economy in subsequent quarters."