Retail sales show surprising growth as consumers show strength despite Delta fears

Retail sales show surprising growth as consumers show strength despite Delta fears

The Census Bureau reported on Thursday that retail sales saw a surprising increase in August despite fears of an increase in COVID cases and supply chain issues.

Sales for the month rose 0.7%, while the Dow Jones expected a decline of 0.8%.

According to the Labor Department, a separate economic report showed weekly jobless claims stood at 332,000 for the week ending September 11. The Dow Jones was estimated at 320,000.

Economists expected consumers to scale back as the Delta version continued its tear through bottlenecks in the persistent US supply chain, also expecting products in request are more difficult to find. .

However, sales remained strong in most regions during the month. The numbers would have been even better without the 3.6% monthly drop in automotive activity; Excluding this segment, sales increased by 1.8%, which is also higher than the expected profit of 0.1%.

As fears about the pandemic grew, shoppers turned online, out-of-store sales jumped 5.3%. Home furnishings and furnishings also saw a decent 3.7% growth, while general merchandise sales rose 3.5%.

Electronics and appliance stores were down 3.1%, while sporting goods and music stores fell 2.7%.

Overall, the numbers reflect a more resilient consumer, with sales up 15.1% from the same period a year ago.

The bullish surprise in retail was moderated slightly by a disappointing reading of jobless claims.

Initial deposits are up 20,000 from a week ago after posting a new pandemic-era low. Nonetheless, the four-week moving average, which takes into account weekly volatility, fell to 335,750, down from 4,250, its lowest point since March 14, 2020, at the start of the pandemic.

Continuing claims have also declined, from 187,000 to 2.66 million, a new low since Covid struck. The four-week moving average has fallen to around 2.81 million.

However, compensation recipients under all programs actually increased just before the end of the federal unemployment benefit increase. This total however dropped from 178,937 to 12.1 million, however, before August 28 and therefore ended.

This is last minute news. Please come back here for updates.

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