US August Retail Sales Rise 1.2% Month-on-Month, Beating Market Expectations
Macro
US retail sales for August, released by the Commerce Department on the 17th, rose 1.2% from the previous month to 773.947 billion dollars, recovering from the prior month's decline, which had been the first drop in nine months, and beating the 0.8% average gain expected by the market. On a year-on-year basis, sales were up 6.0%. Retail sales excluding the volatile autos and auto parts category also rose 1.4% month-on-month, above the 0.6% increase expected by the market. By sector, 12 of all 13 categories posted gains, with the only decline coming from building materials and garden supplies, such as home centers, which fell 0.2%. Gasoline sales rose 3.1% from the previous month, tariff-related electronics and appliances rose 1.6%, and online retail rose 2.6%, with growth accelerating in sectors with heavy discretionary spending. Core retail sales, which exclude gas stations, autos and auto parts, building materials, and restaurants, rose 1.4% month-on-month, the strongest gain in one year and 11 months, since a 1.5% increase in September 2024. As a result, this is expected to boost personal consumption, which accounts for roughly 70% of GDP for the July-September quarter due to be released on October 29.
