U.S. retail sales unexpectedly rose in August as a decline in receipts at auto dealerships was more than offset by strength in online purchases, suggesting that the economy remained on solid footing through much of the third quarter.
Retail sales increased 0.1% last month after an upwardly revised 1.1% surge in July, the Commerce Department’s Census Bureau said.
Retail sales increased 2.1% on a year-on-year basis in August. Online store sales rebounded 1.4% last month after falling 0.4% in July. Sales at gasoline stations dropped 1.2%, reflecting lower prices at the pump. Cheaper gasoline is likely freeing money for other spending. Sales at sporting goods, hobby, musical instrument and book stores increased 0.3%. Building material and garden equipment store sales edged up 0.1%. But sales at food services and drinking places, the only services component in the report, were unchanged after rising 0.2% in July.
Furniture store sales fell 0.7%. Receipts at electronics and appliance outlets dropped 1.1%, while those at clothing retailers decreased 0.7%. Receipts at motor vehicle and parts dealers dipped 0.1%.