Please ensure Javascript is enabled for purposes of website accessibility
Spike in Gas Prices Drives Retail Spending Rise in August
gvw_ap_news
By Associated Press
Published 11 months ago on
September 14, 2023

Share

NEW YORK — Americans stepped up retail spending modestly from July to August as the price of gasoline jumped, cutting into budgets as many families send their kids off to school.

Retail sales rose 0.6% in August, compared with a revised 0.5% increase in July, according to a report issued by the Commerce Department on Thursday.

The big rise in gas prices accounted for more than half of the inflation increase recorded in August, the U.S. reported Wednesday.

Excluding gas, retail sales were just up 0.2% for August, according to the report.

Sales at gas stations rose a robust 5.2%, while furniture and home furnishings stores saw a 1% drop in sales. Clothing and accessories stores had a 0.9% gain, likely helped by back-to-school spending. Restaurants saw a 0.3% increase. Grocery stores had a 0.4% sales increase. Online sales were unchanged in August, perhaps hurt by robust spending during the Amazon Prime day sales event in July.

The uptick in retail sales reflects the economy’s resiliency despite a still tough economic environment. Yet spending has been volatile this year after surging nearly 3% in January. Sales tumbled in February and March before recovering in the spring and summer.

The most recent quarterly financial reports from retailers like Macy’s and Target showed that Americans remain cautious as higher interest rates make cars, homes or using credit cards more expensive.

Inflation jumped last month largely because of the spike in gas prices but other costs rose more slowly, suggesting price pressures are easing at a gradual pace.

In a set of conflicting data released Wednesday, the Labor Department said the consumer price index r ose 3.7% in August fr om a year ago, up from a 3.2% annual pace in July. Yet excluding the volatile food and energy categories, so-called core prices rose 4.3%, a step back from 4.7% in July and the smallest gain in nearly two years. That is still far from the Federal Reserve’s 2% target.

America’s employers added 187,000 jobs in August, evidence of a slowing but still-resilient labor market despite the high interest rates the Federal Reserve has imposed.

In the latest sign that companies are not feeling pressure to increase wages, Walmart is cutting starting pay for some of its new hourly workers like those picking online orders at its stores. The change, which became effective in July, will create consistency in starting hourly pay across individual stores, said spokeswoman Anne Hatfield, which the company says will lead to improved staffing and customer service.

Given this uncertainty, many retailers are being cautious about ordering products from toys to clothing for the holiday shopping season.

They’re also hoping to lure shoppers in with new partnerships that will draw them into the store. Target, hurt by cautious consumer and a backlash to its Pride merchandise, announced earlier this week an exclusive deal with jewelry brand Kendra Scott. Prices for the more than 200 necklaces, rings and accessories will range from $15 to $60, and the collection will be available in select stores next month.

RELATED TOPICS:

DON'T MISS

CA Has Seen Many New Towns, but This Big Project Is Stalled

DON'T MISS

Kern County Farmland Values Continue Downward Slide

DON'T MISS

Crescent View West High Celebrates New Clovis Home

DON'T MISS

Fresno Man Sentenced to 29 Years for Sexually Assaulting Children and Dog

DON'T MISS

Bulldogs’ Two-Position Standout Tommy Hopfe Signs With Rockies

DON'T MISS

Artists, Vendors Plan to Defy City’s ArtHop Crackdown

DON'T MISS

Former Bulldog QB Jake Haener: I Have a ‘Rare Form of Skin Cancer’

DON'T MISS

The Many Names of GOP Vice Presidential Nominee JD Vance

DON'T MISS

‘Fed Up’ Dyer, Councilmembers Unveil Plan to Crack Down on Street Campers

DON'T MISS

House Republicans Slam Trump’s ‘Worst Choice’ for VP Pick JD Vance

UP NEXT

Uber, Lyft, DoorDash Workers Remain Contractors Due to California Supreme Court Ruling

UP NEXT

Watch: Breaking Down Netanyahu’s Speech in Congress

UP NEXT

Stock Market Today: A Widespread Rally on Wall Street Sends Stocks Rising, Both Big and Small

UP NEXT

Uvalde, Texas, School Officer Pleads Not Guilty to Charges of Failing to Protect Kids During Attack

UP NEXT

Spicy Dispute Over the Origins of Flamin’ Hot Cheetos Winds up in Court

UP NEXT

Harris Tells Netanyahu ‘It Is Time’ to Get Hostage Deal Done and End Gaza War

UP NEXT

Biden and Netanyahu Meet With a Show of Amiable Relations Despite Tensions

UP NEXT

Fresno Staffing Company Must Pay $500K in EEOC Sexual Harassment Settlement

UP NEXT

US Economic Growth Increased Last Quarter to a Healthy 2.8% Annual Rate

UP NEXT

Stock Market Today: A Wipeout on Wall Street Sends the S&P 500 Down by 2.3% as Big Tech Skids

Fresno Man Sentenced to 29 Years for Sexually Assaulting Children and Dog

12 hours ago

Bulldogs’ Two-Position Standout Tommy Hopfe Signs With Rockies

12 hours ago

Artists, Vendors Plan to Defy City’s ArtHop Crackdown

13 hours ago

Former Bulldog QB Jake Haener: I Have a ‘Rare Form of Skin Cancer’

13 hours ago

The Many Names of GOP Vice Presidential Nominee JD Vance

14 hours ago

‘Fed Up’ Dyer, Councilmembers Unveil Plan to Crack Down on Street Campers

14 hours ago

House Republicans Slam Trump’s ‘Worst Choice’ for VP Pick JD Vance

14 hours ago

Companies Cut Prices to Boost Sales, Consumers Respond

14 hours ago

Stay Cool, Fresno!

15 hours ago

Warner Bros. Discovery Sues NBA for Not Accepting Its Matching Offer

15 hours ago

CA Has Seen Many New Towns, but This Big Project Is Stalled

When California emerged from its colonial beginnings nearly two centuries ago and began coalescing into a distinct society, its towns and vi...

31 mins ago

31 mins ago

CA Has Seen Many New Towns, but This Big Project Is Stalled

31 mins ago

Kern County Farmland Values Continue Downward Slide

11 hours ago

Crescent View West High Celebrates New Clovis Home

12 hours ago

Fresno Man Sentenced to 29 Years for Sexually Assaulting Children and Dog

12 hours ago

Bulldogs’ Two-Position Standout Tommy Hopfe Signs With Rockies

13 hours ago

Artists, Vendors Plan to Defy City’s ArtHop Crackdown

13 hours ago

Former Bulldog QB Jake Haener: I Have a ‘Rare Form of Skin Cancer’

14 hours ago

The Many Names of GOP Vice Presidential Nominee JD Vance

MENU

CONNECT WITH US

Search

Send this to a friend