Despite apprehensions of a deceleration, America's economic engine continues to chug along strongly.
Consumer expenditure at U.S. retailers slightly increased by 0.1% in August compared to the previous month, according to data released by the Commerce Department on Tuesday. This growth rate is significantly lower than July's revised 1.1% increase but surpasses the anticipated 0.2% decrease as projected in a FactSet survey. However, this data does not account for inflation adjustments.
This slight uptick in retail spending is a positive indication for the country's economy, given that consumer spending contributes to around two-thirds of the U.S. GDP. Retail sales comprise a significant portion of overall consumer spending.
Tuesday's retail sales figures serve as the final significant economic data point before the Federal Reserve announces its interest rate decision on Wednesday. Regardless of this latest data, the anticipated rate cut is unlikely to be significantly altered.
(This story is currently being updated.)
The positive retail sales growth could potentially boost various businesses reliant on consumer spending. Despite the lower growth rate, the economy still demonstrates resilience in the face of fluctuating economic indicators.
