WASHINGTON (AP) – U.S. retail sales barely rose in August as consumers slowed their spending after a robust month of shopping in July.
The Commerce Department said Friday that the value of purchases ticked up just 0.1 percent last month, the smallest increase in six months. But the sluggish figure may prove only a temporary blip. It partly reflected falling prices for items like clothing, and it followed a strong gain of 0.7 percent in July.
FILE – In this Aug. 28, 2018, file photo, Heather Camacuari shops for clothing at a Kohl’s store in Concord, N.C. On Friday, Sept. 14, the Commerce Department releases U.S. retail sales data for August. (AP Photo/Chuck Burton, File)Consumer confidence soared to its highest level in 18 years in August as Americans expressed a more optimistic outlook on the economy. That suggests that retail sales could rebound in the coming months.
“The trend in retail spending is still solid, fueled by job growth and rising wages,” said Ben Ayers, senior economist at Nationwide. “We expect retail sales to pick up again in coming months to continue a strong 2018 for consumer activity.”
Still, auto sales fell 0.8 percent last month, and clothing stores sales plunged 1.7 percent, the steepest drop in 18 months, though that figure mostly reflected lower-priced clothing rather than declining demand.