WASHINGTON, 17th September, 2024 (WAM) -- Americans spent a bit more at retailers last month, providing a small boost to the economy just as the Federal Reserve considers how much to cut its key interest rate, the Associated Press reported on Tuesday.
Retail sales ticked up 0.1 percent from July to August, after jumping the most in a year and a half the previous month, the Commerce Department said Tuesday. Online retailers, sporting goods stores, and home and garden stores all reported higher sales.
The data indicate that consumers are still able and willing to spend more despite the cumulative impact of three years of excess inflation and higher interest rates. Average paychecks, particularly for lower-income Americans, have also risen sharply since the pandemic, which has helped many consumers keep spending even as many necessities became more expensive.
Sales jumped 1.4 percent for online retailers and rose 0.7 percent at health and personal care outlets. Yet they were flat for restaurants and bars, a sign that consumers are holding back from some discretionary spending.
Gas stations reported a 1.2 percent drop in sales, which mostly reflected a decline in prices last month. Auto sales also ticked lower.