• Growth in consumer spending was below expectations last month.

• Slower growth was widespread.

The consumer pulled back on visits to retail outlets last month, despite limited openings of some stores after shutdowns due to COVID-19. Total retail sales, including food service & drinking establishments, increased 0.6% (2.6% y/y) during August following a 0.9% July rise, revised from 1.2%. A 1.0% gain had been expected in the Action Economics Forecast Survey. Retail sales excluding motor vehicles & parts improved 0.7% last month after increasing 1.3% in July, revised from 1.9%. A 1.0% rise had been anticipated. In the retail control group, which excludes autos, gas stations, building materials & food services, sales eased 0.1% (7.2% y/y) after improving 0.9% in July and 6.1% in June. Retail sales excluding restaurants edged 0.1% higher last month (5.1% y/y) after improving 0.5% in July.

Sales of motor vehicle & parts dealerships rose 0.2% in August, in contrast to a 4.5% m/m rise in unit sales reported earlier this month. It followed a 1.0% July decline which came after a 9.0% June rise. Gasoline & service station sales improved 0.4% (-15.4% y/y), even though prices rose 2.0% m/m. Building materials & garden store sales rose 2.0% (15.4% y/y) after falling 2.4% in July.

Sales of nonstore retailers held steady (22.4% y/y) after rising 0.3%. General merchandise stores sales eased 0.4% (+0.8% y/y) after a 1.1% decline in July. Department store sales declined 2.3% (-16.9% y/y) and reversed July's increase. Apparel & accessory store sales strengthened 2.9% in August (-20.4% y/y) after rising 2.2% in July and surging 99.7% in June. Furniture & home furnishing store sales improved 2.1% (3.8% y/y) following a 0.9% rise and a 39.0% jump in June. Electronics & appliance store sales rose 0.8% (-2.4% y/y) after a 20.7% gain. It was the fourth straight month of improvement. Sporting goods, hobby, book & music store sales fell 5.7% (+11.1% y/y) after a 5.3% decline.

Grocery & beverage store sales fell 1.2% last month (+10.0% y/y) after rising 0.6% in July. In another nondiscretionary category, health & personal care products sales rose 0.8% (5.6% y/y) after three months of strong increase.

Eating out remained relatively strong as restaurant and drinking establishment sales rose 4.7% last month (-15.4% y/y) after improving for three straight months.

The retail sales data can be found in Haver's USECON database. The Action Economics forecast is in the AS1REPNA database.