Retail Sales Jump 1.2% in August Rebound
Retail Sales Jump 1.2% in August Rebound

The News
American shoppers opened their wallets again in August: retail sales rose a better-than-expected 1.2%, according to the government data reported Wednesday.
It is the biggest monthly increase in five months, and it comes right after an unexpectedly sharp pullback in July.
Reuters reported the rebound beat expectations and reinforces the economy's resilience — even as consumers grow more anxious about high inflation.
The Numbers
Retail sales: up 1.2% in August, better than forecast.
Ranking: the largest increase in five months, per MarketWatch.
Driver: a big reversal in non-store retailer — online — sales, according to ZeroHedge.
Timeline
Consumers unexpectedly pull back sharply, denting retail sales.
Spending picks back up, with sales rising 1.2% and online retailers swinging from a drag to a driver.
The August retail sales figures are reported, showing the rebound.
Reactions
MarketWatch framed the report as another piece of evidence that the economy "sped up toward the end of summer," saying it "still has plenty of momentum."
Reuters cast it as proof of resilience, noting the gain landed even though consumers are increasingly anxious about high inflation.
ZeroHedge, on the right, credited the strength largely to a swing in online sales rather than broad-based demand.
What's Next
The next monthly retail sales report will show whether August's bounce was a one-month catch-up after July's slump or the start of a stronger stretch for consumer spending.
Watch inflation: sources say shoppers are more worried about rising prices even as they keep spending — a gap that can't hold forever.
More
Retail sales are one of the fastest reads available on the American consumer, who drives the bulk of US economic activity. A single strong month after a weak one tells you less than the trend — which is why economists watch the July-August pair together rather than either month alone.
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