Retail sales rose 0.6% last month from July, when sales were up a revised 0.6%, according to the Commerce Department’s report.
The performance, announced Tuesday, was also likely helped by the continued efforts by Americans to keep pushing up purchases ahead of expected price increases. Moreover, higher prices could be bolstering the number as well.
The increases followed two straight months of spending declines in April and May.
Zaccarelli added that while uncertainty and tariffs have been the theme of 2025, “the resilience of the economy, combined with interest rate cuts, are going to keep this bull market running.” The market just seems to refuse to go lower, he added, noting that September and October are typically the worst trading months of the year.
Excluding auto sales, which have been volatile since Trump imposed tariffs on many foreign-made cars, retail sales rose 0.7% in August.
The data showed solid spending across various stores. Business at electronics and appliance stores up 0.3%, while online retailers had a 2% increase. Business at restaurants rose 0.7%.
Jeffrey Roach, Chief Economist for LPL Financial, said in a statement to Fortune that consumers appeared to be price conscious, as nonstore retail sales contributed over half of the monthly gain. The next largest contributor, he noted, was restaurant sales and this “suggests the consumer is on stable footing, minimizing recession risk.”
