US retail sales ticked up last month in sign of ongoing consumer resilience
Americans spent a bit more at retailers last month, providing a small boost to the economy just as the Federal Reserve considers how much to cut its key interest rate
WASHINGTON (AP) — Americans spent a bit more at retailers last month, providing a small boost to the economy just seven weeks before Election Day as the Federal Reserve considers how much to cut its key interest rate.
Retail sales ticked up 0.1% from July to August, after jumping the most in a year and a half the previous month, the Commerce Department said Tuesday. Online retailers, sporting goods stores, and home and garden stores all reported higher sales.
The data indicate that consumers are still able and willing to spend more despite the cumulative impact of three years of excess inflation and the higher interest rates intended to combat those rising prices. Average paychecks, particularly for lower-income Americans, have also risen sharply since the pandemic, which has allowed many Americans to continue spending even as many necessities became more expensive. And price increases are slowing, with inflation falling to a three-year low last month of 2.5%.
The impact of inflation and consumers' health has been an ongoing issue in the presidential campaign, with former President Donald Trump blaming the Biden-Harris administration for the post-pandemic jump in prices. Vice President Kamala Harris has, in turn, charged that Trump's claim that he will slap 10% to 20% tariffs on all imports would amount to a “Trump tax” that will raise prices further.
