August sales at U.S. furniture and home furnishings stores slipped 0.7 percent versus July, and rose 1.6 percent over August of last year, according to the monthly retail sales report from the U.S. Census Bureau.

The tepid performance at the cash registers last month contrasts with the July figures, which produced stronger growth, both month to month and year over year, than June’s figures.

Looking at the other channels that sell home products, general merchandise stores’ sales were flat from July to August and were down 0.7 percent from August 2015. Department store sales (excluding leased departments) posted decreases of 0.6 percent month-to-month and 5 percent year to year. Sales at nonstore retailers fell 0.3 percent from July but gained 5.8 percent over last year’s August.

The sales figures posted at the home channels were part of an overall deceleration in U.S. retail last month. Retail sales totaled $456.3 billion, down 0.3 percent from July and up 1.9 percent from August 2015.

“The pattern of summer slowing was evident last year and that is what we’re seeing again this year,” said Jack Kleinhenz, chief economist of the National Retail Federation. “Last month’s data may also reflect a drag from ongoing retail price declines that have affected the industry for several years.”

The outlook down the road is somewhat cheerier, according to Kleinhenz. “Despite this drop off, other indicators suggest that this is a temporary dip and that consumers will remain a driving force in the U.S. economy,” he said. “Rising incomes and steady employment gains should provide the fuel for spending as we look ahead to the holiday season.”

(Source: hfndigital.com  Author: David Gill)