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US Retail Revenue Robust Ahead of Tariff Hike
Sep 16, 2019 4:37 AM
By Rapaport News
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RAPAPORT... US retail sales rose in August, even as consumer confidence slipped slightly from the previous month amid the escalating trade war.
Total sales — excluding automobiles, gasoline and
restaurants — rose 0.4% compared with July and 4.6% year on year, according to
data the National Retail Federation (NRF) reported, citing the US Census
Bureau. Online and other non-store sales climbed 14% year on year, the NRF
noted.
“While consumer attitudes about the economy indicate some
retreating optimism, the bottom line is that consumer spending remained
resilient in August, and continued to be a key contributor to US economic
growth,” NRF chief economist Jack Kleinhenz said last week.
However, August’s sales growth was slightly slower than July’s,
which could reflect sliding consumer confidence. The numbers in August reflect the
period prior to the first round of tariffs implemented by US President Donald
Trump.
“Trends remain strong, but [the slight dip] could reflect
consumers’ concerns about the unpredictability of trade policy,” Kleinhenz
explained. “It is too early to assess the impact of the new tariffs that took
effect at the beginning of this month, but they do present downside risks to
household spending.”
Retailers may offset higher tax rates by raising the price of the goods they sell to reflect the hike. However, they are making an effort to avoid passing on the increase to customers by stocking up on extra goods prior to the levies going
into effect, the NRF noted.
Imports at major retail ports reached unusually high numbers
just before the most recent tariffs took effect on September 1, and are
expected to surge again before the next round of taxes in December, according
to the group’s Global Port Tracker report. Shipments in August rose 1.8% year
on year to 1.93 million TEU. A TEU is one 20-foot-long cargo container or the
equivalent.
“Retailers are still trying to minimize the impact of the
trade war on consumers by bringing in as much merchandise as they can before
each new round of tariffs takes effect and drives up prices,” said Jonathan
Gold, NRF vice president for supply chain and customs policy.
Image: Mall of America, Bloomington, Minnesota. (Flickr)
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Tags:
Bureau of Labor Statistics, Global Port Tracker, Jack Kleinhenz, Jonathan Gold, National Retail Federation, NRF, Rapaport News, US Census Bureau, US retail sales
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