by Overall retail sales were up 6% during the same period, suggesting consumer spending is on the rebound
WASHINGTON — On Sept. 16, the U.S. Census Bureau released its Monthly Retail Trade Report for August. Seasonally adjusted, total sales were $773.9 billion, up 6% compared to August 2025.
Following a larger-than-expected drop in July (revised to a 0.5% decline), August spending bounced back strongly, with an increase of 1.2%. According to retail and consumer behavior expert Chip West, the August recovery was largely anticipated by economists and it surpassed expectations.
According to the census bureau report, furniture and home furnishings store sales increased 0.9% in August. Year-over-year sales stayed in positive territory, rising 1.9% over last August, which West attributes to baseline price adjustments and back-to-college move-in demand.
According to West, July’s spending drop looks more like a temporary dip than a sustained decline in consumer demand. West said the upturn was fueled by a broader mix of economic forces and changing consumer habits. He said back-to-school shopping pushed heavily into August.
“Unlike previous years, when early-summer promotions shifted sales into July, 2026 saw shoppers wait until the last minute before the school year started,” West said. “This delay generated a sharp seasonal boost for apparel, footwear, tech hardware, office supplies and sporting goods. While Americans are buying fewer total items, they remain willing to treat themselves to select, accessible luxuries.”
West also stated that he expected retail spending to continue growing through September and October, as consumers keep finding ways to spend and retailers move aggressively to get holiday inventory in front of shoppers earlier.
“Retailers pushed their peak shipping windows into September, leaving distribution hubs and shelves well-stocked for the holidays and fueling competitive early discounts,” said West. “Meanwhile, high energy costs and sticky inflation continue to strain household finances. In response, shoppers are increasingly opting for store brands, postponing major nonessential purchases and holding out for seasonal promotions.”
West added that “many consumers are tapping into their savings to continue spending, but how long that can continue will depend in part on where gas prices go from here.”
The top-performing sectors in August month-over-month were: non-store retailers (up 2.6%); miscellaneous store retailers (up 1.9%); and electronics and appliance stores (up 1.6%). The three worst-performing categories month-over-month were: building material and garden equipment dealers (down 0.2%); food and beverage stores (down 0.4%); and furniture and home furnishings stores (up 0.9%).
It will be interesting to see if the momentum carries through Labor Day and the remainder of September when the U.S. Census Bureau releases its September report next month.
