US economy on solid ground as retail sales surprise on the upside

  • Retail sales increase 0.1% in August
  • Core retail sales rise 0.3%; July sales revised up
  • Manufacturing production rebounds 0.9%
  • Business inventories increase 0.4%
U.S. retail sales unexpectedly rose in August as a decline in receipts at auto dealerships was more than offset by strength in online purchases, suggesting that the economy remained on solid footing through much of the third quarter.
The report from the Commerce Department on Tuesday also showed retail sales were a bit stronger than initially thought in July. It combined with the decline in the unemployment rate last month to push against financial market expectations for a half-percentage-point interest rate cut from the Federal Reserve on Wednesday. U.S. central bank officials started a two-day policy meeting on Tuesday.

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Article URL : https://www.reuters.com/markets/us/us-retail-sales-unexpectedly-rise-august-2024-09-17/