WASHINGTON, DC, Sep 14, 2006/ --- Summer vacations, back-to-school shopping and end of season clearance promotions motivated consumers to hit the stores this past month. According to the National Retail Federation (NRF), retail industry sales for August (which exclude automobiles, gas stations, and restaurants) rose 6.5 percent over last year and increased 0.3 percent seasonally adjusted over July.

August retail sales, released today by the U.S. Commerce Department, showed total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 6.7 percent unadjusted year-over-year and increased 0.2 percent seasonally adjusted from July.

“With a successful back-to-school selling season behind them, retailers can now look to the fourth quarter with a little more optimism,” said NRF Chief Economist Rosalind Wells. “Declining gas prices could provide a nice psychological boost for consumers just in time for the holidays.”

Clothing and clothing accessories stores, benefiting from the back-to-school promotions and end of summer sales, rose 7.3 percent unadjusted from last August, while showing a slight decrease of 0.3 percent from the prior month. Furniture and home furnishings stores also rose a strong 6.4 percent unadjusted from last year, while decreasing 0.3 percent over the prior month.

Health and personal care stores had an impressive showing in August, increasing 0.6 percent from July and 7.3 percent unadjusted year-over-year. Sporting goods, hobby, book and music stores rose 0.8 percent month-to-month and 6.5 percent unadjusted from August 2005.

The consumer electronics category was a major performer during the back-to-school selling season. Sales in electronics and appliances stores increased 0.1 percent from the prior month and 4.9 percent unadjusted from last August.

Building material and garden equipment and supplies dealers continued to show steady growth in spite of the slowing housing market. Sales in this category were up 0.1 percent from the prior month and 7.6 percent unadjusted year-over-year.

NRF estimates that combined back-to-school and back-to-college sales were $54.2 billion this year.

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