Pre-Tariff Shipping Rush Buoys US Retail Sales

US retail sales rose in August as consumers rushed to beat rising tariffs coming into effect and stocked up on school supplies.

Revenue increased 0.6% — adjusted for seasonal variation — from the previous month to $732 billion, according to data the US Census Bureau released Tuesday. It was the third consecutive month sales improved following hikes of the same magnitude in both July and June.

“Consumer spending rose again in August, fueled by a still-stable consumer and a robust back-to-school shopping season,” said National Retail Federation (NRF) CEO Matthew Shay. “Spending was supported by lower fuel costs, tax-free holidays and consumers buying products before tariff increases take effect.”

However, much of the spending is on necessities, rather than luxury and other nonessential goods, Shay explained.

“Even with weaker job growth than many expected, employment remains stable and at a high level, giving consumers the ability to spend thoughtfully on household priorities,” he commented. “Nonetheless, consumers are preserving spending power by cutting back on less-essential services.”

Sales were up 5% from last year, higher than July’s 3.9% gain, the Census Bureau reported.

The NRF, which monitors spending using credit- and debit-card purchase data rather than survey-based numbers, found that August sales were 0.5% higher than July’s. Sales grew 6.8% from the same period a year ago, the federation said.

Year on year, August’s sales grew in eight of the nine categories the NRF monitors. The clothing and accessories segment — which encompasses jewelry — gained 8% year on year and 0.2% versus the previous month. Meanwhile, the building and garden supply stores category was the only one to see a drop, falling 8% year on year and 2.1% from the month before.

Image: A family at a shopping mall. (Shutterstock)