Sep 16, 2025 - Business

Retail sales surprise as Americans increase spending in August

Courtenay Brown

A man looking at shoes in front of a wall of sneakers at a shoe store. — A shopper at a Texas mall. Photo: Brandon Bell/Getty Images

Shoppers spent more than expected in August: Retail sales rose 0.6%, while the previous month's figures were revised higher, the Commerce Department said on Tuesday.

Why it matters: Consumers continue to open their wallets, despite rocky labor market conditions and higher inflation that has raised concerns about the health of the economy.

By the numbers: Retail sales were up twice as much as economists anticipated.

July's data was revised up a tick as well, to show retail sales increasing 0.6% in the month.

Zoom in: Most retail categories saw better sales in August, with e-commerce sites (+2%), clothing stores (+1%) and sporting goods and other hobby shops (+0.8%) showing the strongest monthly increases.

Miscellaneous retailers (-1%), department stores (-0.8%) and furniture shops (-0.3%) were among the few categories to see a pullback in spending.
The data is not adjusted for inflation, which has been building pace as a result of tariffs.

The bottom line: Retail sales are a bright spot for a U.S. economy that is otherwise feared to have slowed notably over the summer.

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Retail sales surprise as Americans increase spending in August

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