By
Bloomberg
Published
September 17, 2024
U.S. retail sales unexpectedly rose in August, supported by online shopping that masked more mixed results at other retailers.
The value of retail purchases, not adjusted for inflation, rose 0.1% after a revised 1.1% increase in July, Commerce Department data showed Tuesday. Excluding autos and gas stations, sales advanced for a fourth month.
Five of the 13 categories in the report posted increases, while others, such as electronics and appliances, clothing and furniture, fell. Revenue at gasoline service stations fell, reflecting cheaper prices at the pump.
The retail sales report showed that sales of the control group, which are used to calculate gross domestic product, rose 0.3% in August. The measure excludes food services, auto dealers, building materials stores and gas stations.
The data show household demand remains strong midway through the third quarter, although hiring and wage growth show signs of moderating. For Federal Reserve policymakers, the data also illustrate that the economy is on solid footing as they debate Wednesday how much to cut interest rates.
In addition to slower job growth, economists predict that the combination of elevated borrowing costs, depleted savings from the pandemic and a higher cost of living will eventually prompt American consumers to cut back on spending.
