Retail Sales Research Brief

Spending improved broadly. Core retail sales rebounded last month after a moderate drop in spending in July, largely due to a pullback in online sales. Supported by gains across nine of 10 major retail categories, core spending rose 1.2 percent in August and 5.6 percent year-over-year. Wide-ranging sales growth indicates that while many households are prioritizing necessities, many are also setting aside part of their budgets for experiences and dining out, aiding a diverse mix of retailers. Still, recent headwinds will test these households’ purchasing power.