Sep 17, 2024 - Business

Retail sales rise in August as consumers keep spending

Courtenay Brown

People with shopping bags walking in New York City — Shoppers outside of Macy's flagship store in New York City. Photo: Yuki Iwamura/Bloomberg via Getty Images

The summer shopping season ended on a softer note: Retail sales ticked up 0.1% in August as consumers pulled back on spending, the Commerce Department said on Tuesday.

Why it matters: That consumers kept spending, albeit at a slower rate than earlier in the summer, raises confidence about the health of the U.S. economy.

Economists expected an outright drop in retail sales, with forecasts of a decline of 0.2% in August.
The data surprised to the upside—and July spending was revised up to 1.1%, stronger than initially estimated.

Driving the news: Retail sales at gasoline stations saw the biggest pullback, though that is likely a result of falling gasoline prices. The data is not adjusted for inflation.

Spending also slowed at electronic and appliance stores, restaurants, and furniture retailers.
Online stores, health and personal care shops and a catch-all category for miscellaneous retailers saw a pick-up in spending.

The bottom line: The Fed is expected to announce an interest rate cut at the end of its two-day policy meeting on Wednesday as concerns mount that the economy is on shaky footing.

Today's data provides something of a silver lining: Consumers are still spending.

Add Axios on Google

Retail sales rise in August as consumers keep spending

What to read next