U.S. Retail Sales Growth Defies Labor Market Weakness
U.S. retail sales rose more than expected in August, driven by consumer purchases and dining out, despite a weakening labor market and rising tariff-induced prices. The Commerce Department's report suggests caution on aggressive rate cuts, amid concerns over labor market conditions. Sales were up across various sectors.
In August, U.S. retail sales surpassed expectations as consumers increased their spending across a variety of merchandise and dining experiences. Despite this growth, the labor market's sluggishness and climbing prices due to tariffs put the sustained spending strength at risk.
According to the Commerce Department's report on Tuesday, this marks the third consecutive month of healthy sales increases. However, the Federal Reserve is expected to reduce interest rates to address labor market concerns, although the sales data may prompt them to proceed cautiously with rate cuts.
Retail sales climbed by 0.6% last month, outperforming economic forecasts, with notable gains in sectors such as apparel, auto dealerships, and sporting goods. Meanwhile, restaurant and bar spending indicates stable consumer finances, alleviating recession fears, despite broader economic challenges.
(With inputs from agencies.)
ALSO READ
US Tariffs Impact Global Energy Transition
U.S. Weighs New Tariffs on Imported Auto Parts
Stalemate in India-US Trade Talks: Russian Oil Tariffs At Center Stage
US Tariffs Challenge Indian Textile Sector Amid Festive Demand Slump
UPDATE 1-Bessent says US won't hit China with tariffs over Russian oil unless Europe goes first
Google News