US retail sales saw a notable increase in August, marking the third consecutive month of gains. The value of retail purchases, which is not adjusted for inflation, rose by 0.6%, following a similar 0.6% increase in July. This August growth exceeded all forecasts in a Bloomberg survey of economists, signaling a robust summer for consumer spending. Excluding automotive sales, retail purchases climbed by 0.7%.
The strong retail sales figures suggest continued resilience in consumer activity. Despite a softening labor market, consumers demonstrated a willingness to spend on a variety of goods and services, including back-to-school items and dining out. This broad advance in retail sales also coincided with a 0.3% increase in US import prices for the month, driven by strong gains in capital and consumer goods.
In contrast, July 2026 saw a decline in retail sales by 0.6%, which was the largest drop since May 2025. This decrease was attributed to consumers cutting back on purchases at online stores and auto dealerships. However, the August 2025 data indicates a rebound, reinforcing the notion of resilient, albeit sometimes fluctuating, consumer demand.
