The U.S. retail sales rose in February, showing resilient U.S. consumers who are still spending despite the economic uncertainty and political uncertainty.
The u.s. retail sales 2020 is a statistic that shows how the U.S. economy is doing in the year 2020, based on retail sales data from the past 10 years. Retail sales are up by 4% this year, showing that consumers are resilient and still buying products despite economic problems.
In September, American consumers increased their spending, indicating strong demand and increasing inflation.
The Commerce Department said Friday that September retail sales increased 0.7 percent over the previous month, despite supply limitations, the Delta variation, and the expiration of extended unemployment benefits.
Higher consumer prices, which rose 0.4 percent in September from August and 5.4 percent from a year ago, contributed to the increase in sales. Retail sales, which aren’t adjusted for inflation, increased by 13.9 percent in September compared to the same month last year.
Retail sales for August were revised up to 0.9 percent from 0.7 percent before.
In a note to clients, Andrew Hunter, senior U.S. economist at Capital Economics, said, “Despite claims of more widespread shortages, expenditure on products seems to have held up pretty well.” Nonetheless, he observed that expenditure growth has decreased from earlier this year, indicating that economic growth slowed in the summer.
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According to a separate Commerce Department data, spending on automobiles and car components increased 0.5 percent last month, despite vehicle sales falling to a seasonally adjusted annual rate of 12.6 million in September from 18.8 million in April.
“It tells you that prices per unit have risen significantly,” said Joshua Shapiro, MFR Inc.’s senior U.S. economist. “This is due to both shortages—dealers may mark these automobiles up—and the mix” of vehicles being offered.
This month, Jeeps were on exhibit in New York City, as car supplies remained tight throughout most of the United States.
courtesy of Getty Images/Spencer Platt
A worldwide scarcity of computer chips has struck the auto industry hard, slowing manufacturing and leaving dealers with few vehicles to sell.
According to Mr. Shapiro, manufacturers have concentrated on producing more costly cars, pushing up costs.
Retail sales were up 0.8 percent excluding car purchases.
According to Aneta Markowska, chief economist at Jefferies LLC, a delayed back-to-school buying season may improve September sales figures. Some parents, she added, waited until the schools clarified their intentions before making purchases over the summer.
According to the data, spending at restaurants and bars increased by 0.3 percent in September, indicating that the Delta variation hasn’t deterred people from leaving their homes. Consumers also increased their spending on petrol by 1.8 percent and on sports items, music, and books by 3.7 percent.
Disruptions in supply chains, on the other hand, seem to be extending beyond the car sector, and they may have an impact on consumer purchasing later this year.
“When you have that increase in holiday-related sales in November and December, shipping bottlenecks will become more of a problem,” Ms. Markowska said.
The Biden administration said on Wednesday that the Port of Los Angeles, one of the busiest in the nation, will be open 24 hours a day to deal with backlogs that have left containers piled up at the port and dozens of ships waiting offshore.
Because of supply chain issues, James Burris, owner of Black Dog Bikes in Staunton, Va., says he has to inform clients searching for a particular item that he can’t have it delivered to the shop right immediately.
“Not being able to order one of those higher-end motorcycles on the spur of the moment has harmed us since we’re losing out on the sale,” he said. He noted that the shop has a decent supply of entry-level bikes, and that overall sales have been steady, on line with previous years.
Retail sales increased in March compared to the previous month, as many Americans got $1,400 checks from the government as part of President Biden’s Covid-19 rescue plan. Since then, consumer spending has been reasonably stable, remaining far above pre-pandemic levels.
According to the Commerce Department, after many rounds of government stimulus, families now have approximately $1.6 trillion in savings, or 9.4% of disposable income, far above pre-pandemic levels.
At the same time, according to the Labor Department, private-sector hourly earnings increased 4.6 percent in September over the previous year, indicating robust labor demand, but not enough to offset higher inflation in the previous year.
As continuing supply chain problems imperil the Christmas shopping season, satellite pictures reveal the magnitude of the backlog at ports in California. Jennifer Smith of the Wall Street Journal outlines what’s driving the cargo and ship delays. Planet Labs Inc. photo
Economists anticipate the spending boost given by stimulus payments and more generous unemployment benefits to diminish over time, but many retailers are still finding customers willing to spend.
Parents often rent instruments for their children to practice on, according to Zach Gray, manager of Music & Arts in Greenville, S.C. Many people are now purchasing instruments entirely, he added.
“It’s not very common for a parent to spend $700 on a saxophone for a sixth-grader who isn’t sure whether they want to keep playing,” he said.
David Harrison can be reached at [email protected]
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Retail sales rose in June, showing resilient U.S. consumers. The numbers were better than expected and the outlook for the rest of the year is positive. Reference: retail sales june 2021.
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