Retail sales increased in August despite delta variant concerns
By Ishika Dangayach on Sep 16, 2021 | 04:36 AM IST
Retail sales in the United States increased in August as
demand for products remained robust despite the growing concerns of delta
variant.
Retail and restaurant sales increased 0.7 percent last
month, despite a significant drop in vehicle sales due to product shortages and
delivery issues, according to the Commerce Department on Thursday.
In July, sales were down 1.8 percent. Excluding automobiles,
sales increased by 1.8 percent last month.
The manufacture of automobiles has been hindered by a global
scarcity of semiconductors. The paucity of chips has also hampered the supply
of some home gadgets such as microwaves and refrigerators.
Earlier in the summer, retail sales increased rapidly as
consumers shifted their spending away from products and toward services such as
dining out and vacations. That change happened as more Americans were immunized
and state and municipal governments lifted numerous Covid-19-related
restrictions, some of which have since been reinstated in light of the recent
increase in coronavirus infections, WSJ reported.
Building material shop sales grew by 0.9 percent, while
furniture store revenues jumped by 3.7 percent.
Receipts from sporting goods, hobby, musical instruments,
and book retailers fell 2.7 percent. Electronics and appliance shop sales
decreased 3.1 percent, owing to stock shortages.
Restaurant and bar sales were likely unchanged as a result
of the high number of coronavirus infections that kept people at home. The sole
service category in the retail sales report is restaurants and bars.
Retail sales recovered 2.5 percent last month after a
downwardly revised 1.9 percent fall in July, excluding vehicles, fuel, building
materials, and food services.
These so-called core retail sales are the most closely
related to the consumer expenditure component of GDP.
In the second quarter, the economy increased at an annualized pace of 6.5 %. The Atlanta Federal Reserve now expects GDP to rise at a 6.0 % annual rate in the third quarter.
Inputs from Reuters