U.S. retail sales rose steadily in August, showing consumers continued to spend even as job growth slowed. According to federal data, retail sales increased 0.6 percent from July, extending gains seen in both June and July. On a year-over-year basis, sales were up 5 percent, marking the fastest growth in four months.
Back-to-school spending drives gains
Much of the increase was driven by back-to-school shopping, with families investing in supplies, clothing, and electronics. Online sales were particularly strong, climbing 2 percent from the prior month. Restaurants also saw growth of 0.7 percent, while auto sales rose 0.5 percent, adding to the overall strength of August’s numbers.
While part of the increase reflects higher prices, adjusted figures indicate consumer spending remains solid in real terms. Analysts note that the consistent growth underscores resilience among households despite economic headwinds.
Labor market could weigh on spending
The latest retail report comes as job growth has shown signs of slowing. Economists caution that a weakening labor market could eventually limit purchasing power in the coming months. Still, August data suggests households have so far managed to balance rising costs with continued demand for goods and services.
Local and national impact
For businesses in the San Gabriel Valley, steady consumer spending offers some stability as retailers prepare for the holiday season. Nationally, the data shows a mixed picture: demand remains healthy, but future trends will depend on whether job growth stabilizes and inflation pressures ease.
More details on U.S. retail spending can be found at the U.S. Census Bureau.
