Retail sales rise even as tariffs affect jobs, prices

Shoppers increased their spending at a better-than-expected pace in August from July, helped by back-to-school shopping, even as President Trump's tariffs start to hurt the job market and lead to price increases.

- BY ANNE D'INNOCENZIO

THE U.S. saw August retail sales increase by 0.6% from July. Above, a grocery store in Dallas last month.

Retail sales rose 0.6% last month from July, when sales were up a revised 0.6%, according to the Commerce Department's report. In June, retail sales rose 0.9%, the government agency said.

The August performance, announced Tuesday, was also probably helped by the continued efforts by Americans to keep pushing up purchases ahead of expected price increases.

The sales increases followed two straight months of spending declines in April and May.

Excluding auto sales, which have been volatile since Trump imposed tariffs on many foreign-made cars, retail sales rose 0.7% in August. Sales at auto vehicle and parts dealers rose 0.5%.

The data showed solid spending across various other outlets. Business at electronics and appliance stores was up 0.3%, while online retailers saw a 2% increase. Business at clothing and accessories retailers rose 1%.

And business at restaurants, the lone services component within the Census Bureau report and a barometer of discretionary spending, rose 0.7%. Business at furniture and home furnishings stores was down 0.3%.

A category of sales that excludes volatile sectors such as gas, cars and restaurants rose last month by 0.7% from the previous month. The figure feeds into the Bureau of Economic Analysis' consumption estimate and is a sign that consumers are still spending on some discretionary items.