Retail sales make strong comeback in August
Retail sales in rebounded in August as consumers kept spending and the back-to-school season kicked in.
Total retail sales rose 1.2% in August to $773.9 billion, compared to a revised 0.5% drop in July, and were up 6% year over year, according to the Commerce Department. It was the largest monthly increase since March. Excluding gas stations, retail sales rose 1.1% in August. (The government figures are not adjusted for inflation.)
Sales at the “control group” — which excludes food services, autos, building materials and gas station sales — increased 1.4%.
Sales at non-store retailers surged 2.6%, while sales at electronics and appliance stores increased 1.6%. Sales at sporting goods, hobby, musical instrument and book retailers rose 1.2%. Furniture and home furnishings stores recorded a 0.9% gain. Sales at clothing and accessories stores inched up 0.7%.
Building materials and garden equipment was the only category to decline as sales fell 0.2%. Sales at food and beverage stores were essentially flat, with a 0.4% gain.
In comments, David Silverman, senior director, Fitch Ratings, noted that sales growth in August was broad based across most categories, suggesting still-resilient shoppers and a solid back-to-school season across relevant categories, which should support the industry’s cautious optimism it approaches the holiday selling season.
“One of the few weak categories this month was grocery stores, which have seen rising questions about market share defensibility against discount and membership club models, which offer competitive prices and increasingly attractive service models,” he said.
The retail metrics were released on the same day as data revealed import prices rose last month. The U.S. Bureau of Labor Statistics reported that U.S. import prices rose 0.7% in August 2026, reversing a 0.3% decline in July. In the 12 months through August, import prices rose 7.0%.
The sales figures were also released the same day as the Federal Reserve approved its first interest rate hike in more than three years and indicated another to come. The move was seen as part of an effort to combat inflation brought on by spiraling oil prices and other factors.
