Retail sales rise a better-than-expected 1.2% in August

U.S. retail sales grew 1.2% in August, surpassing the 0.7% gain analysts had forecast, according to Commerce Department data released on September 16, 2026. The increase follows a revised 0.5% decline in July, which had been unexpected after strong spending during the World Cup, Amazon Prime Day, and earlier tax‑refund‑driven months. Excluding gasoline station sales, overall retail rose 1.1% in August. Category‑level gains included clothing and accessories stores up 0.7%, furniture and home‑furnishings stores up 0.9%, online retailers up 2.6%, and restaurants – the sole services category reported – up 1.2%.

Fuel prices remain a pressure point. The average U.S. diesel price hit $6.301 per gallon and gasoline $4.355 per gallon, with expectations of diesel climbing to $6.60 per gallon in the coming days. AAA reported regular gasoline at $4.37 per gallon on September 16, roughly 47% higher than pre‑war levels, while diesel has risen 68% year‑to‑date. The Labor Department said consumer prices rose 3.4% year‑over‑year in August and 0.4% from July, up from a 0.1% increase the month before.

Retailers note that shoppers are still spending despite higher fuel costs, though sustained price pressure could strain household budgets. Some retailers, such as Walmart and Macy’s, are using government tariff refunds to lower prices; Macy’s received $116 million in refunds, part of which is being applied to big‑ticket items like furniture and fine jewelry. National Retail Federation chief economist Mark Mathews said the K‑shaped spending pattern is softening, with higher‑income households still able to spend while lower‑income families face tighter budgets. The data provides a snapshot of consumer behavior and does not include travel or hotel spending.