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Bloomberg
US retail sales rose by less than forecast in August following an upwardly revised July gain as purchases of automobiles and clothing fell, suggesting households took a breather from spending.
The value of overall sales climbed 0.1 percent from the prior month after a 0.7 percent increase in July, Commerce Department figures showed. The median forecast of economists surveyed by Bloomberg called for a 0.4 percent gain.
Combined results from July and August indicate support from a strong job market and more after-tax pay during the back-to-school shopping season. While household spending, the biggest part of the economy, continues to drive economic growth this quarter, still-tepid pay gains and higher borrowing costs are among reasons why it’s projected to cool from its second-quarter pace.
With the revisions to July, “the net result is fairly strong spending growth so far†in the quarter, Jim O’Sullivan, chief US economist at High Frequency Economics Ltd., said in a research note.
A separate report from the Federal Reserve showed US factory production rose in August amid broad-based gains that included automakers, providing support for economic growth this quarter.
The retail sales figures aren’t adjusted for price changes.