U.S. Retail Sales Jump 1.2% In August, Much More Than Expected
(RTTNews) - Retail sales in the U.S. shot up by much more than expected in the month of August, according to a report released by the Commerce Department on Wednesday.
The Commerce Department said retail sales jumped by 1.2 percent in August after falling by a revised 0.5 percent in July.
Economists had expected retail sales to increase by 0.7 percent compared to the 0.6 percent drop originally reported for the previous month.
Excluding an increase in sales by motor vehicle and parts dealers, retail sales still surged by 1.4 percent in August after dipping by 0.2 percent in July. Ex-auto sales were expected to rise by 0.5 percent.
"Given the rebound in retail sales, we are on track for another quarter of solid corporate earnings," said Jeffrey Roach, Chief Economist for LPL Financial. "We also expect the Fed will raise rates to address the inflationary pressures coming from the demand side of the economy."
The bigger than expected rebound in retail sales partly reflected a sharp increase in sales by gas stations amid higher gasoline prices, with gas station sales spiking by 3.1 percent.
The report also showed significant increases in sales by non-store retailers, miscellaneous store retailers and electronics and appliance stores.
Sales by food services and drinking places and sporting goods, hobby, musical instrument and book stores also saw notable growth, while sales by department stores slid.
The Commerce Department also said core retail sales, which exclude automobiles, gasoline, building materials and food services, jumped by 1.4 percent in August after falling by 0.4 percent in July.
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