WASHINGTON—Total retail sales rose for the seventh consecutive month in August, but at a slower pace: August saw 0.1% growth while July's sales growth was revised up to 0.7%.
NAFCU Research Assistant Yun Cohen attributed the slowdown to apparel stores.
"The sector reported its largest sales decline in one-and-a-half years as apparel prices slumped 1.6% during the month," Cohen said in a NAFCU Macro Data Flash report. "Weaker vehicle sales also dragged down overall growth. Meanwhile, sales at the pump continued to grow due to rising gasoline prices."
Core retail sales (excluding light vehicles and gasoline) increased 0.2% in August; auto and gas sales decreased 0.1% during the month.
Results among the major retail segments were mixed in August. Miscellaneous stores saw an increase of 2.3%, followed by gas stations (+1.7%) and nonstore retailers (+0.7%). Sales at apparel stores fell 1.7%, followed by auto dealers (-0.8%) and furniture stores (-0.3%), Cohen said.
Cohen said consumer spending is expected to spur economic growth during the third quarter as a result of a strong labor market and stimulative tax cuts, though interest rates and tariffs continue to pose potential problems.