Retail Sales: Core Gains Moderate

Bottom Line:   Retail sales rose slightly more than expected at the headline level, but core sales were lower than expected and saw downward revisions. After Amazon Prime Day boosted July sales, nonstore sales, the largest core category, fell 0.7% and were decelerating on a trend basis. Restaurant and bar sales saw better ales but were also decelerating on a trend basis. Home furnishings were a drag again, with that sector seeing declines of over 11% annualized in the three months ended in August as the impact of higher mortgage rates hit. Overall, the trend in retail sales showed modest deceleration over the summer as the consumer felt the burden of higher prices and interest rates.

Total US Retail Sales ROSE 0.29% , ex Auto, Parts & Gas sales FELL -0.5%  Retail Sales for June were revised up from +0.81% to +1.03% and for July were revised down from +0.03% to -0.4%. Core Retail Sales for June were revised up from +0.9% to +1.2% and for July were revised down from +0.48% to +0.098%.