Retail Sales: Continued Gains

Bottom Line:   Retail sales rose more than expected in August, with modest negative revisions to prior data that still left sales higher. Core sales were solid as online sales held flat after very strong gains in July amid Amazon's Prime Day. Consumers were also still spending robustly at restaurants and bars. Clothing sales were also higher. Sales at building and garden supply stores also appeared to stabilize as months of weaker sales. Home furnishing retailers, though, continue to struggle amid lower affordability in the housing market. On net, the consumer continued to grow at a modest to moderate pace.

Total US Retail Sales ROSE 0.56%  in August (consensus was +0.1 %), Jun revised down to +0.2% from 0.31%, Jul revised down to +0.46% from 0.73%. Core Retail Sales (excludes Autos, Parts & Gas) ROSE 0.16%  (consensus was -0.1 %). Sales in the Control Group (Core less food services and building supply) ROSE 0.11%  (consensus was -0.1 %).