Retail sales: Against the odds, Americans are still spending

Washington
 — 

Americans still opened their wallets last month, despite persistent fears about the economy, a slowing labor market and higher tariffs.

Spending at US retailers rose 0.6% in August, the Commerce Department said Tuesday, unchanged from July’s upwardly revised 0.6%. Last month’s figure came in much better than economists’ expectations of a 0.2% increase, according to a poll by data firm FactSet. Retail sales are adjusted for seasonal swings but not inflation.

Employers have hit the brakes on hiring in recent months as Americans once again grow pessimistic about the economy’s future. President Donald Trump’s widespread tariffs have also began to push up some prices, according to the Consumer Price Index.

Yet, US consumers haven’t cut back their spending meaningfully yet, and they may continue to spend so long as layoffs don’t surge.

This story is developing and will be updated.