Slowing US economy indicates retail sales, manufacturing

The U.S. Census Bureau's advance estimates showed retail sales increased by 0.3 percent in August, exceeding expectations of a zero percent increase. In July, the economy dropped by 0.4 percent, which was the first decline in seven months.

A total of $683.3 billion was spent by consumers in August 2021, an increase of 9.1 percent from the previous year. A higher price for goods and services reflects a higher cost for consumers. Additionally, gas station sales may have fallen by 4.2 percent due to lower gasoline prices. As a result, shoppers may have spent more on building materials and garden equipment (1.1 percent), general merchandise stores (0.5 percent), and clothing (0.4 percent).

Despite the decline in gasoline prices, the American Automobile Association (AAA) reported that the average gallon of gasoline in the nation cost less than $3.70. The price of gasoline has fallen by an estimated 26 percent since June, when it peaked at $5.01.

More Americans purchased motor vehicles, according to the latest retail trade data. Retail sales fell by 0.3 percent when auto sales were removed from the data. Gasoline, building materials, food services, and motor vehicles were excluded from core retail sales. According to the Bureau of Economic Analysis's (BEA) Gross Domestic Product measurement, this statistic could be devastating for the U.S. economy in the third quarter.

15 September 2022