Retail sales rise a better-than-expected 1.2% in August after shoppers pulled back spending in July
US retail sales grew by 1.2% in August, exceeding expectations and rebounding after a spending decline in July. This broad advance indicates consumer resilience despite inflation and rising gas prices. The strong spending data supports the Federal Reserve's potential case for raising short-term interest rates to combat persistent inflation. Market reactions included gold trading at $4,340 per ounce following the report. The growth suggests that American households continue to power the economy even as they face higher costs at the pump.
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- ✓ Retail sales increased 1.2% in August.
- ✓ Retail spending declined in July.
- ✓ August retail sales growth exceeded expectations.
- ✓ Consumers continued spending despite rising gas prices.
What changed
August retail sales data shows a 1.2% increase that outperformed forecasts.
Live updates
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US Retail Sales Rise 1.2% in August Following July Dip
US retail sales grew by 1.2% in August, exceeding expectations and rebounding after a spending decline in July. This broad advance indicates consumer resilience despite inflation and rising gas prices. The strong spending data supports the Federal Reserve's potential case for raising short-term interest rates to combat persistent inflation. Market reactions included gold trading at $4,340 per ounce following the report. The growth suggests that American households continue to power the economy even as they face higher costs at the pump.
Why it matters
The Federal Reserve is widely expected to raise interest rates this Wednesday for the first time in three years. This move aims to address stubbornly high inflation. Retail spending levels serve as a key indicator of economic strength for policymakers.
What is confirmed
- Retail sales increased 1.2% in August.
- Retail spending declined in July.
- August retail sales growth exceeded expectations.
- Consumers continued spending despite rising gas prices.
Still unconfirmed
- The Federal Reserve is widely expected to lift its short-term interest rate Wednesday.
- Gold price traded at $4,340/oz following the retail sales report.
What to watch next
- Federal Reserve interest rate decision on Wednesday
- Future government snapshots of consumer spending patterns
confidence 95%Sources used for this update (11)
- AP News — Retail sales rise a better-than-expected 1.2% in August after shoppers pulled back spending in July
- Bloomberg.com — US Retail Sales Rebound More Than Expected in Broad Advance
- WSJ — U.S. Retail Sales Rebound in Show of Consumer Strength
- Reuters — US retail sales rebound sharply in August
- KITCO — Gold price trades at $4,340/oz after retail sales rise 1.2% in August
- Los Angeles Times — Retail sales jump in august as Americans keep spending despite gas price squeeze
- U.S. News & World Report — Strong Retail Sales Make Fed’s Case for Rate Hikes Easier | National News | U.S. News
- www.pbs.org — Retail sales rise better-than-expected 1.2% in August
- www.wvgazettemail.com — Retail sales rise a better-than-expected 1.2% in August after shoppers pulled back spending in July
- brandequity.economictimes.indiatimes.com — Retail sales rise a better-than-expected 1.2 per cent in August after shoppers pulled back spending in July
- www.briefs.co — Morrisons' hottest quarter in a year as sunshine and the World Cup lift sales
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