U.S. retail sales rose more than expected in August as rising gasoline prices boosted revenue at gas stations.
“Retail sales rose 0.6% in August. July’s data was revised down to show a 0.5% advance instead of the 0.7% previously announced,” the US Commerce Department reported.
The rise in gasoline prices last month likely affected the budgets of low-income families. Excluding gas stations, retail sales rose 0.2%.
Gasoline prices accelerated in August, peaking at $3,984 a gallon in the third week of the month, the highest this year, according to data from the U.S. Energy Information Administration. By comparison, the price was $3,676 per gallon in the same period in July.
Amazon’s Prime Day promotion in July, which was the largest on record, and the fact that parents started to advance their back-to-school purchases likely boosted some of the spending. Online retail sales remained stable.
While spending remains supported by higher wages in a tight labor market, the outlook is darkening.
The excess savings accumulated during the COVID-19 pandemic continue to run out. Credit card balances have risen sharply, and delinquencies reached their highest level in 11 years in the second quarter, according to data from the New York Federal Reserve.
