Retail Sales Jump 1.2% As Consumers Keep Spending
By CU Today Staff —
WASHINGTON—U.S. retail sales rebounded sharply in August, rising a stronger-than-expected 1.2% as consumers increased spending across a broad range of categories despite persistent inflation pressures, according to new Commerce Department data.
The Census Bureau said Wednesday that retail and food-services sales totaled a seasonally adjusted $773.9 billion, up 6% from August 2025. July's decline was revised to 0.5% from the initially reported 0.6%.
The increase was the largest since March and easily exceeded the 0.8% gain economists surveyed by Reuters had expected. Reuters reported that sales increased across a broad range of categories, with nonstore retailers posting a 2.6% increase and clothing-store sales rising 0.7%. The gains came even as higher gasoline prices lifted spending at service stations. Retail sales figures are not adjusted for inflation.
A closely watched measure of sales that excludes automobiles, gasoline, building materials and food services surged 1.4%, the largest increase since September 2024, Reuters reported.
The strength comes despite concerns that higher prices could eventually squeeze household budgets. AP reported that even excluding gasoline stations, August sales increased 1.1%.
Originally reported by CU Today.