Overview

• U.S. retail sales rose 0.6% in August, matching July’s revised pace, while the core control group climbed 0.7%, pointing to solid goods spending.
• Because the figures are not adjusted for inflation, economists noted that higher prices tied to tariffs and some pre-buying likely boosted the nominal totals.
• Gains were broad-based, with nonstore retailers up 2.0%, clothing stores up 1.0%, and restaurants and bars up 0.7%, as furniture and specialty stores declined.
• The labor market has cooled, with slower hiring, unemployment near 4.3%, and pressure most evident on lower-income households even as higher earners keep spending.
• The Federal Reserve was widely expected to cut rates by a quarter point on Wednesday to support employment despite the upbeat sales headline.