Home Improvement Sales Suffer Amid Slowing Housing Market

Consumer sentiment took a hit in August, but retail sales bounced back by 1.2% after a previous decline. The increase was largely driven by gas stations and non-store retailers, such as Amazon.

However, one category that experienced a slight dip was building material stores, which could be bad news for companies like Lowe's and Home Depot. According to Rachel Drew, director of the remodeling futures program at the Harvard Joint Center for Housing Studies, many consumers are putting off non-essential home projects due to rising costs.

'Like renovating your kitchen and redoing your cabinetry and countertops,' she said. 'People who aren't renovating don't need supplies.'

The slowdown in home improvement sales is linked to the decline in existing home sales, which are down due to rising mortgage rates. As chief operating officer at Sage Policy Group Zack Fritz pointed out, people tend to put off repairs and renovations if they're not planning to sell their house.