Please ensure Javascript is enabled for purposes of website accessibility
Spike in Gas Prices Drives Retail Spending Rise in August
gvw_ap_news
By Associated Press
Published 2 years ago on
September 14, 2023

Share

NEW YORK — Americans stepped up retail spending modestly from July to August as the price of gasoline jumped, cutting into budgets as many families send their kids off to school.

Retail sales rose 0.6% in August, compared with a revised 0.5% increase in July, according to a report issued by the Commerce Department on Thursday.

The big rise in gas prices accounted for more than half of the inflation increase recorded in August, the U.S. reported Wednesday.

Excluding gas, retail sales were just up 0.2% for August, according to the report.

Sales at gas stations rose a robust 5.2%, while furniture and home furnishings stores saw a 1% drop in sales. Clothing and accessories stores had a 0.9% gain, likely helped by back-to-school spending. Restaurants saw a 0.3% increase. Grocery stores had a 0.4% sales increase. Online sales were unchanged in August, perhaps hurt by robust spending during the Amazon Prime day sales event in July.

The uptick in retail sales reflects the economy’s resiliency despite a still tough economic environment. Yet spending has been volatile this year after surging nearly 3% in January. Sales tumbled in February and March before recovering in the spring and summer.

The most recent quarterly financial reports from retailers like Macy’s and Target showed that Americans remain cautious as higher interest rates make cars, homes or using credit cards more expensive.

Inflation jumped last month largely because of the spike in gas prices but other costs rose more slowly, suggesting price pressures are easing at a gradual pace.

In a set of conflicting data released Wednesday, the Labor Department said the consumer price index r ose 3.7% in August fr om a year ago, up from a 3.2% annual pace in July. Yet excluding the volatile food and energy categories, so-called core prices rose 4.3%, a step back from 4.7% in July and the smallest gain in nearly two years. That is still far from the Federal Reserve’s 2% target.

America’s employers added 187,000 jobs in August, evidence of a slowing but still-resilient labor market despite the high interest rates the Federal Reserve has imposed.

In the latest sign that companies are not feeling pressure to increase wages, Walmart is cutting starting pay for some of its new hourly workers like those picking online orders at its stores. The change, which became effective in July, will create consistency in starting hourly pay across individual stores, said spokeswoman Anne Hatfield, which the company says will lead to improved staffing and customer service.

Given this uncertainty, many retailers are being cautious about ordering products from toys to clothing for the holiday shopping season.

They’re also hoping to lure shoppers in with new partnerships that will draw them into the store. Target, hurt by cautious consumer and a backlash to its Pride merchandise, announced earlier this week an exclusive deal with jewelry brand Kendra Scott. Prices for the more than 200 necklaces, rings and accessories will range from $15 to $60, and the collection will be available in select stores next month.

RELATED TOPICS:

DON'T MISS

Trump Considers Massive Extension of Travel Ban Targeting Up to 43 Countries

DON'T MISS

George Soros and Elon Musk Clash in Wisconsin Supreme Court Race

DON'T MISS

Romania’s Democracy Tested as Court Blocks Controversial Presidential Bid

DON'T MISS

Trump Orders Strikes on Houthi Rebels in Yemen, Issues New Warning to Iran

DON'T MISS

Merced Kicks Off $3.5 Million Bob Hart Square Renovation

DON'T MISS

Playing Political Whac-A-Mole As Issue Of Bond Measure Language Pops Up Again

DON'T MISS

A Loophole in California Law Makes It Hard to Prosecute Threats Against Schools. Will Lawmakers Close It?

DON'T MISS

Rubio Says South Africa’s Ambassador to the US ‘Is No Longer Welcome’ in the Country

DON'T MISS

Dodgers’ Star Mookie Betts Sidelined in Japan With Flu-Like Symptoms

DON'T MISS

US Imposes Sanctions on Thai Officials After Uyghur Men Are Deported to China

UP NEXT

CA Regulator Mulls State Farm’s Request for 22% Home Insurance Hike

UP NEXT

Stock Market Today: US Stocks Rally After Their Sell-off, but Not by Enough

UP NEXT

Smoke Shop Ordinance Eludes Divided Fresno City Council

UP NEXT

Trump Threatens 200% Tariff on EU Wine in Response to Proposed US Whiskey Tax

UP NEXT

Trump to Name Michelle Bowman as Top Bank Regulator at Federal Reserve

UP NEXT

Canada and the EU Swiftly Retaliate Against Trump’s Steel and Aluminum Tariffs

UP NEXT

US Factories Likely to Feel the Pain From Trump’s Steel and Aluminum Tariffs

UP NEXT

Trump Admin Halts $1 Billion Program That Keeps Affordable Housing Livable

UP NEXT

US Inflation Cools, Though Trade War Threatens to Lift Prices

UP NEXT

Wall Street Keeps Shaking as Encouraging Inflation Data Helps but Escalating Trade War Hurts

Trump Orders Strikes on Houthi Rebels in Yemen, Issues New Warning to Iran

3 hours ago

Merced Kicks Off $3.5 Million Bob Hart Square Renovation

4 hours ago

Playing Political Whac-A-Mole As Issue Of Bond Measure Language Pops Up Again

4 hours ago

A Loophole in California Law Makes It Hard to Prosecute Threats Against Schools. Will Lawmakers Close It?

4 hours ago

Rubio Says South Africa’s Ambassador to the US ‘Is No Longer Welcome’ in the Country

4 hours ago

Dodgers’ Star Mookie Betts Sidelined in Japan With Flu-Like Symptoms

5 hours ago

US Imposes Sanctions on Thai Officials After Uyghur Men Are Deported to China

5 hours ago

Shohei Ohtani Hits 2-Run HR in Return to Japan Against Yomiuri Giants

5 hours ago

Polish PM Offers Jesse Eisenberg Military Training for ‘James Bond’ Role

5 hours ago

Voters Flood Town Halls With Fears of Social Security Cuts, Putting Heat on GOP

5 hours ago

Trump Considers Massive Extension of Travel Ban Targeting Up to 43 Countries

President Donald Trump is reportedly contemplating a new travel ban that could affect citizens from up to 43 countries. This potential expan...

2 hours ago

President Donald Trump speaks to reporters during a meeting with NATO Secretary General Mark Rutte at the White House in Washington, Thursday, March 13, 2025. (Pool via AP)
2 hours ago

Trump Considers Massive Extension of Travel Ban Targeting Up to 43 Countries

2 hours ago

George Soros and Elon Musk Clash in Wisconsin Supreme Court Race

3 hours ago

Romania’s Democracy Tested as Court Blocks Controversial Presidential Bid

3 hours ago

Trump Orders Strikes on Houthi Rebels in Yemen, Issues New Warning to Iran

4 hours ago

Merced Kicks Off $3.5 Million Bob Hart Square Renovation

4 hours ago

Playing Political Whac-A-Mole As Issue Of Bond Measure Language Pops Up Again

4 hours ago

A Loophole in California Law Makes It Hard to Prosecute Threats Against Schools. Will Lawmakers Close It?

4 hours ago

Rubio Says South Africa’s Ambassador to the US ‘Is No Longer Welcome’ in the Country

Help continue the work that gets you the news that matters most.

Search

Send this to a friend