US retail sales rise, rate hike prospects improve
Retail sales in the United States increased by 1.2% in August, surpassing expectations of a 0.8% gain after a 0.5% decline in July. This rise reflects ongoing consumer spending strength despite rising inflation, oil price impacts, and supply chain disruptions. Part of the growth is attributable to higher car sales and stockpiling supplies in preparation for the school year, alongside continued wage support and a growing stock market. Additionally, core retail sales—excluding gasoline and vehicles—rose by 1.4%, reinforcing market expectations that the Federal Reserve may raise interest rates later today. Overall, the data indicate a resilient U.S. economy with growth prospects exceeding 2% in the third quarter.
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