Americans just keep spending.
Retail sales in August rose 0.6% from the prior month, more than the 0.2% expected and the latest sign that US consumers continue to be resilient in the face of a labor market that has shown some signs of stress.
Excluding spending on cars and gas, sales rose 0.7% last month.
The largest category increases were seen in spending at clothing stores and nonstore retailers — which captures e-commerce spending — suggesting a strong back-to-school shopping season. The retail sales data is not adjusted for inflation.
“Net, net, the consumer hasn’t pulled the plug on the economy yet,” said Chris Rupkey, chief economist at FWDBONDS, “and until they do, growth will continue to chug along at a moderate pace that seems to defy gravity in the face of rising tariff costs and store-bought prices.”