US retail sales rise 1.2% as motor vehicle purchases increase

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US retail sales rose 1.2% in August, rebounding after a 0.5% drop in July, according to the Commerce Department's Census Bureau.
The increase was driven by higher motor vehicle purchases, back-to-school spending, and elevated gasoline prices lifting receipts at service stations.
Core retail sales, which exclude automobiles, gasoline, building materials and food services, surged 1.4%, far above the 0.4% rise economists had forecast.
Households continue to spend despite high inflation, supported by steady wage growth, stock market gains, and reduced saving, though consumer sentiment deteriorated this month.
The strong retail sales figures strengthen financial market expectations that the Federal Reserve will raise interest rates.

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Named United States · Federal Reserve · Reuters · United States Census Bureau · United States Department of Commerce

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