Retail spending in the United States continued to rise in August, driven by back-to-school purchases and consumer efforts to avoid potential price increases from new tariffs, according to the latest data from the CNBC/NRF Retail Monitor, powered by Affinity Solutions.

The report, published by the National Retail Federation (NRF), indicates ongoing stability in household spending amid fluctuating economic conditions.

Steady consumer demand supports retail growth

Total retail sales, excluding automobiles and gasoline, increased by 0.5% month over month in August and were up 6.81% compared with the same month last year.

Core retail sales, which also exclude restaurants, rose 0.26% month over month and 6.67% year over year.

NRF President and CEO Matthew Shay noted that spending remained strong due to lower fuel costs, tax-free holidays, and early purchasing ahead of anticipated tariff hikes.

While job growth has slowed compared with earlier forecasts, employment levels remain high, enabling consumers to prioritise essential household purchases.

Category performance highlights shifting consumer priorities

The Retail Monitor reported mixed results across different retail sectors.

Digital products, including e-books and video games, recorded the largest year-on-year growth at 25.98%, while sporting goods, hobby, music, and book stores increased by 8.96% annually despite a slight monthly decline.

Clothing and accessories stores also saw steady growth, up 8.26% year over year.

General merchandise and grocery stores experienced moderate increases, while building and garden supply stores were the only sector to show declines both monthly and annually, falling 2.13% and 7.77% respectively.

Methodology reflects real-time spending trends

Unlike government survey-based estimates, the Retail Monitor uses anonymised credit and debit card transaction data collected by Affinity Solutions. This approach provides near real-time insights into consumer behaviour and avoids the need for later revisions common in traditional Census Bureau reports.

The monitor’s findings suggest that while consumers remain willing to spend on essentials and digital products, discretionary categories such as home improvement may be affected by rising prices and inflationary pressures.