U.S. retail sales softened in September as consumers took a breather after a busy summer and back-to-school shopping season, according to new data from the CNBC/Retail Monitor released by the National Retail Federation (NRF).
Core retail sales, which exclude restaurants, auto dealers and gasoline stations, fell 0.49% month over month, following a 0.26% increase in August, but were still up 5.72% year over year.
Total retail sales, which include restaurants but exclude autos and gas, declined 0.66% month over month and rose 5.42% year over year.
“While month-over-month spending data has fluctuated as consumers have reacted to changing circumstances, year-over-year gains show robust growth and signal momentum as we head into the holidays,” said Matthew Shay, NRF president and CEO.
The September slowdown was broad-based, with sales declining in five of nine categories on a monthly basis. The steepest drop came from furniture and home furnishings stores, where sales fell 1.87% from August.
Despite the monthly dip, most sectors still showed solid year-over-year gains, reflecting sustained consumer resilience heading into the holiday shopping period.
Digital products, including electronic books and games, led growth with a 0.52% monthly increase and a 21.35% annual rise. Sporting goods, hobby, music and book stores also saw gains of 0.74% month over month and 8.81% year over year.
Apparel sales, however, slipped 1.06% compared to August, though they were up 7.35% from a year earlier. General merchandise stores fell 0.62% month over month but rose 5.52% year over year, while grocery and beverage storesdropped 0.76% monthly and increased 4.79% annually.
Meanwhile, health and personal care stores inched up 0.38% month over month and 4.65% year over year, and electronics and appliance stores dipped slightly by 0.12% from August but gained 4.43% from September 2024.
The only major category showing both monthly and annual declines was building and garden supply stores, up 0.53% month over month but down 1.2% year over year.
Unlike traditional survey-based estimates from the US Census Bureau, the Retail Monitor uses anonymized credit and debit card transaction data collected by Affinity Solutions, allowing for more timely reporting without later revisions.
The latest figures suggest that while consumers remain willing to spend, they are doing so more selectively ahead of the critical holiday shopping season, a trend retailers will be closely watching in the months ahead.
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