Americans continue spending
American consumers continued spending in August, with U.S. retail sales performing better than expected.
The latest figures offer another look at how households are behaving during a period marked by concerns about prices and the cost of living.
Business inventories also increased
Another economic indicator showed that U.S. business inventories increased 0.8% in July.
Economists surveyed by Reuters had expected an increase of about 0.3%.
Consumer spending is closely watched
Consumer behavior is one of the most closely monitored indicators of the U.S. economy because household spending accounts for a significant share of economic activity.
Changes in spending at grocery stores, restaurants, retailers, auto dealers and online businesses help show how Americans are responding to current economic conditions.
Businesses prepare for the coming months
The figures arrive as retailers prepare for one of the most important periods on the U.S. commercial calendar, with fourth-quarter shopping and the holiday season approaching.
Source: Reuters and U.S. Census Bureau
