US consumer sentiment, retail sales rise as inflation ebbs

The news: US retail sales posted a surprise month-over-month (MoM) gain of 0.1% in August, per the Commerce Department, as consumer demand continues to hold up despite broader economic and political uncertainty.

• On a year-over-year (YoY) basis, retail and food service sales were up 2.1% in August, falling slightly short of last month’s 2.5% annual inflation rate.
• Core retail sales—which exclude autos, gas, building materials, and food services—grew 0.3% MoM and were up 5.7% YoY in the last three months, marking the fastest pace of growth since August 2023.