US retail sales increase strongly; softening labor market a headwind

By Lucia Mutikani WASHINGTON (Reuters) - U.S. retail sales increased more than expected in August as consumers bought a range of goods and dined out, but a weakening labor market and rising prices because of tariffs pose a downside risk to continued strength in spending. The third straight month of solid gains in sales reported by the Commerce Department on Tuesday is unlikely to prevent the Federal Reserve from cutting interest rates on Wednesday, given the widening cracks in the labor market. It could, ...