The numbers: Sales at U.S. retailers rose 0.6% in August despite a hangover for internet stores after the Amazon Prime Day event, but most of the increase was tied to higher gasoline prices.
While consumer spending has been surprisingly strong this year, higher interest rates and a slowdown in hiring are expected to restrain purchases in the months ahead. Millions of Americans also have to start paying back their student loans.Key details: Sales at internet retailers were flat last month after a 1.5% gain in July. Shoppers scaled back after buying lots of stuff around Amazon Prime Day.
Retail sales increased a mild 0.2% when car dealers and gas stations are set aside, which gives a better idea of consumer demand. Big picture: A burst of momentum in the economy over the summer is likely to fade due to higher interest rates, but there’s little evidence to suggest a recession is on the way. Americans are still spending plenty of money.