Retail sales surged toward the end of summer. Economy still has plenty of momentum.

Sales at U.S. retailers surged in August and posted the biggest increase in five months, offering another piece of evidence suggesting the economy sped up toward the end of summer. Sales at retailers shot up 1.2% last month, the government said Wednesday, well above the Wall Street forecast. Auto dealers sold more cars and higher energy prices boosted receipts at gas stations, but sales were just as strong even if those two segments are excluded.

Internet retailers and restaurants were the biggest winners. Video 91/1 Skip Ad Continue watching after the adVisit Advertiser websiteGO TO PAGE Vertiv's CEO on Nvidia, AI, Growth, and More Play video: Vertiv's CEO on Nvidia, AI, Growth, and More The trend in retail sales in the past year is quite robust even with high inflation. Receipts have risen 6%, well above the long-term average, though sales were more modest after taking inflation into account.

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I can unsubscribe at any time. Retail sales represent a large slice of consumer spending — the main engine of growth for the U.S. economy. **Big picture:**Americans are spending enough money to grease the economy, especially wealthier people who’ve enjoyed ever-rising stock prices. For lower-income families it’s more of a struggle.

Yet part of the increase in spending merely reflects higher inflation — Americans are paying more for gas and other goods and services. The strain on families from higher inflation could persist for some time. Copyright ©2026 MarketWatch, Inc.

All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8 The ‘CIA’ strategy beating the market: How one top-performing money manager spots mispriced stocks The smartest money moves to make with interest rates expected to go higher What's next for SpaceX as more shares enter the market and capex jumps This BlackRock strategist opposes a Fed hike. Here are the funds she recommends. Intraday Data provided by FACTSET and subject to terms of use.