Retail sales rise 0.6% in August largely due to a spike in gas prices

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Retail sales rise 0.6% in August largely due to a spike in gas prices
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Shoppers stepped up their buying modestly as inflation on many items eased, but they still face a host of economic challenges over the next few months.

Shoppers wait to purchase items in a boutique on Tennyson Street Saturday, Aug. 5, 2023, in northwest Denver. On Thursday, the Commerce Department releases U.S. retail sales data for August.– Americans stepped up retail spending modestly from July to August as the price of gasoline jumped, cutting into budgets as many families send their kids off to school.

A closely watched category of retail sales that excludes auto dealers, gas stations and building materials and feeds into the gross domestic product increased just 0.1% last month compared to the prior month, after a revised 0.7% increase in July.recorded in August, the U.S. Labor Department reported Wednesday. The surge in gas prices is coursing through the economy and could slow down shoppers' momentum heading into the critical holiday shopping season.

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