Retail sales up 0.6% in August from July even as tariffs hurt jobs and lead to price hikes
Shoppers increased their spending at a better-than-expected pace in August from July, helped by back-to-school purchases, even as President Donald Trump’s tariffs are starting to hurt the job market and lead to price hikes
A cashier rings up groceries in Dallas, Thursday, Aug. 28, 2025. (AP Photo/LM Otero)
NEW YORK (AP) — Shoppers increased their spending at a better-than-expected pace in August from July, helped by back-to-school purchases, even as President Donald Trump’s tariffs are starting to hurt the job market and lead to price hikes.
Retail sales rose 0.6% last month from July, when sales were up a revised 0.6%, according to the Commerce Department’s report.
The performance, announced Tuesday, was also likely helped by the continued efforts by Americans to keep pushing up purchases ahead of expected price increases. Moreover, higher prices could be bolstering the number as well.
...
Gisele looks out from a shopping cart as her owner Ally shops for groceries in Dallas, Thursday, Aug. 28, 2025. (AP Photo/LM Otero)
The increases followed two straight months of spending declines in April and May.
Excluding auto sales, which have been volatile since Trump imposed tariffs on many foreign-made cars, retail sales rose 0.7% in August.
The data showed solid spending across various stores. Business at electronics and appliance stores up 0.3%, while online retailers had a 2% increase. Business at restaurants rose 0.7%.
