Government data released Tuesday showed that U.S. retail spending in August was stronger than anticipated, while import prices also surprised to the upside.
According to the Commerce Department, overall retail sales advanced 0.6% in August, the same pace as July’s upwardly revised increase. Economists had only projected a modest 0.2% rise, compared with the 0.5% originally reported for July.
Stripping out autos and parts, sales rose an even stronger 0.7%, following a revised 0.4% gain the prior month. Forecasts had pointed to a 0.4% increase versus the earlier 0.3% reading.
In a separate release, the Labor Department reported that import prices climbed 0.3% in August. That followed a 0.2% gain in July, which was revised lower, and stood in contrast to expectations for a 0.1% decline. Export prices also increased by 0.3%, repeating July’s upwardly revised advance. Economists had predicted no change from the prior month’s initial 0.1% uptick.
The stronger-than-expected readings suggest resilient consumer demand and sticky trade-related price pressures, factors likely to be closely watched by the Federal Reserve as it calibrates its policy path.
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