Retail sales up 0.6% in August from July even as tariffs hurt jobs and lead to price hikes

Core Insights - Retail sales in August increased by 0.6% compared to July, with July's sales also revised up by 0.6%, indicating a stronger-than-expected consumer spending trend [1][2] - The rise in retail sales is attributed to back-to-school purchases and consumer anticipation of price increases due to tariffs, which may have prompted earlier spending [1][2] - Excluding auto sales, which have been affected by tariffs, retail sales rose by 0.7% in August [2] Spending Performance - Solid spending was observed across various retail sectors, with electronics and appliance stores seeing a 0.3% increase, online retailers experiencing a 2% rise, and restaurants reporting a 0.7% increase in business [3] - This performance follows two consecutive months of spending declines in April and May, suggesting a rebound in consumer confidence and spending behavior [2]