United States retail sales climbed more than expected in August, as consumer spending remained resilient despite mounting economic headwinds from a softening labour market and higher prices tied to tariffs.
The Census Bureau reported on Tuesday that retail sales rose 0.6% last month, matching the upwardly revised July increase.
Markets had forecast only a 0.2% gain. Sales were up 5.0% from a year earlier.
Adjusted for inflation, however, economists estimated monthly sales increased just 0.2%.
The latest data marked the third consecutive month of solid retail gains and prompted economists to lift their gross domestic product forecasts for the third quarter.
ANZ analysts said: “The retail sales data indicate that demand was firm, and consumers continued spending despite tariffs kicking in from early August.”
The figures are unlikely to dissuade the Federal Reserve from delivering a rate cut on Wednesday, but they may temper expectations of more aggressive easing given signs of economic resilience.
Spending gains were widespread across categories. Auto dealership receipts rose 0.5% after a 1.7% advance in July, largely reflecting higher vehicle prices as unit sales slipped.
Clothing store sales increased 1.0%, while receipts at sporting goods, hobby, musical instrument and book stores rose 0.8%. Food and beverage store sales were up 0.3%.
Rising gasoline prices lifted service station receipts by 0.5%. Online sales surged 2.0% after a 0.6% increase in July, while electronics and appliance stores recorded a 0.3% gain.
Furniture outlets, however, saw a 0.3% decline, and sales at building material and garden equipment retailers edged only 0.1% higher.
Dining out provided another bright spot, with sales at restaurants and bars - considered a key gauge of household finances - rising 0.7% following a 0.1% dip in July.
The stronger retail figures came alongside signs of firming inflation. Government data last week showed consumer prices in August rose by the most in seven months, with notable increases in food and apparel costs.
In a separate release on Tuesday, the Federal Reserve reported that U.S. industrial production unexpectedly edged 0.1% higher in August, after a downwardly revised 0.4% decline in July. Markets had anticipated a 0.1% drop.
