US retail sales up 1.2% in August 2026 on autos
Business
US retail sales bounced back by 1.2% in August 2026, mainly thanks to more car buying and the usual back-to-school rush.
This uptick followed a rare dip in July and beat what most economists were expecting.
Even when you leave out big-ticket items like cars and gas, core sales still rose a solid 1.4%.
Strong sales raise Fed rate odds
Higher gas prices gave service stations a boost, but people are also spending steadily despite inflation and supply chain headaches, helped by steady paychecks and stock market gains.
Still, many are saving less and choosing cheaper options lately, showing some caution.
With strong sales and stubborn inflation, there's now a bigger chance the Federal Reserve could raise interest rates to keep prices in check.