US retail sales rise 1.2% in August, largest monthly gain since March

American consumers apparently decided July’s spending slump was a one-month vacation, not a lifestyle change. Retail and food services sales climbed 1.2% in August, the strongest monthly advance since March, according to data released by the US Census Bureau on September 16. The bounce follows a 0.6% decline in July, which had been the first monthly drop in nine months. The numbers behind the rebound On a year-over-year basis, retail sales grew 6.0% in August. July’s sales had clocked in at $763.6 billion. The National Retail Federation offered a more measured read, noting that core retail sales, which strip out automobiles, gas stations, and restaurants, rose just 0.1% month-over-month. Year-over-year growth in those core segments landed around 3.3%. The control group, a subset of retail sales that excludes autos, gas, building materials, and food services and serves as a direct input into GDP calculations, posted a 1.4% monthly increase. Health and personal care retailers, along with online and non-store segments, showed relative strength among the categories that posted gains. Context: why July was weak and August was strong July’s decline had been attributed to shifts in consum...