WASHINGTON (AP) — Americans spent a bit more at retailers last month, providing a small boost to the economy just as the Federal Reserve considers how much to cut its key interest rate.
Retail sales ticked up 0.1% from July to August, after jumping the most in 18 months the previous month, the Commerce Department reported Tuesday. Online retailers, sporting goods stores, and home and garden stores reported higher sales.
The data indicate that consumers are still able to spend more despite the cumulative impact of three years of excess inflation and higher interest rates. Average paychecks, particularly for lower-income Americans, have also risen sharply since the pandemic, which has helped many consumers keep spending even as many necessities became more expensive.
The impact of inflation and consumers' health has been an ongoing issue in the presidential campaign, with former President Donald Trump blaming the Biden-Harris administration for the post-pandemic jump in prices. Vice President Kamala Harris has, in turn, charged that Trump's claim that he will slap 10% to 20% tariffs on all imports would amount to a “Trump tax” that will raise prices further.
Christopher Rugaber, The Associated Press