The latest numbers reveal that sales at U.S. retailers increased by 0.6% in August, despite a sluggish performance from Internet stores following the Amazon Day sales event. However, it’s worth noting that a significant portion of this increase can be attributed to higher gasoline prices.
Initially, experts had predicted a more modest rise of just 0.1% last month after a larger jump in July. During that time, Amazon recorded its largest day of sales ever, and other retailers also held successful sales, leading to strong activity in the market.
It is worth mentioning that retail sales typically account for approximately one-third of all consumer spending and are seen as a reliable indicator of overall economic strength.
While consumer spending has exceeded expectations this year, the combination of rising interest rates and a slow hiring pace is expected to dampen future purchases. In fact, analysts predict that the upcoming holiday shopping season could be the weakest one in the past five years.
Prior to this report, both the Dow Jones Industrial Average and the S&P 500 were set to begin the trading day on a positive note.
