U.S.: People spent 0.6% more in August, three times what was expected

WHAT HAPPENED

Retail sales in the U.S. rose 0.6% in August compared to July, three times what was expected. People spent $732 billion, 5% more than a year ago, despite rising prices and diesel.

WHY IT MATTERS

Consumption remains strong: a family that spent $1,000 a month spent around $1,006. This helps stores, restaurants, and temporary jobs, but complicates the decrease in inflation. Automobiles, appliances, and construction feel any changes in rates first.

AND FOR YOUR PORTFOLIO

For a long-term portfolio, the data supports companies linked to consumption, as their customers continue to buy. However, persistent inflation may keep interest rates high and make credit more expensive for homes, cars, appliances, and construction.