U.S. retail sales beat market expectations in August, rebounding from the previous month's weakness even as high fuel costs and inflation continued to weigh on households.
Retail sales rose 1.2% from the prior month to $773.9 billion (about 1,058.7 trillion won), the U.S. Census Bureau said on the 16th, local time. That topped the 0.8% gain expected by economists surveyed by Bloomberg and Reuters. July's decline was revised slightly to 0.5% from 0.6%. Sales were up 6.0% from a year earlier.
The pickup was broad-based. Sales rose in 12 of the 13 retail categories tracked by Bloomberg. Back-to-school demand is seen as having driven sales at general merchandise stores and in clothing, sporting goods and electronics.
Nonstore retailers, including online sellers, posted the biggest gain at 2.6%, while gas station sales rose 3.1% on higher fuel prices. Sales of electronics and appliances increased 1.6%, and receipts at restaurants and bars gained 1.2%. Motor vehicles and parts rose 0.6%. Department store sales fell 0.8%.
Excluding autos and gasoline, retail sales also rose 1.2%, while sales excluding autos alone climbed 1.4%. That indicates consumer spending expanded clearly even after stripping out the boost to gas station receipts from rising fuel prices.
Core retail sales — which exclude autos, gasoline, building materials and food services, and feed most directly into the personal consumption component of gross domestic product — surged 1.4% from the previous month. That far exceeded the 0.4% increase Reuters had projected and marked a rebound from a 0.4% decline in July.
The monthly retail sales report is an early indicator that mainly captures goods spending, offering a gauge of the consumption that anchors the U.S. economy. The latest figures suggest American consumers are continuing to spend despite persistent inflation and a sharp rise in energy prices.
