US retail sales rise 1.2% in August, beating forecasts

US retail sales increased more than expected in August, recording their strongest monthly gain in five months, according to Census Bureau data released Wednesday.

Advance estimates showed retail and food services sales totaled $773.9 billion, rising 1.2% from the previous month and exceeding expectations for a 0.8% increase.

July’s monthly decline was revised to 0.5% from the previously reported 0.6%. It was the first contraction since October 2025.

On an annual basis, retail sales rose 6% in August. Total sales during the June-August period were also 6% higher than in the same period last year.

Gasoline stations posted the largest monthly increase, with sales climbing 3.1%, followed by non-store retailers, which include online sellers, at 2.6%.

Sales also grew at miscellaneous store retailers by 1.9%, electronics and appliance stores by 1.6% and food services and drinking places by 1.2%.

Sporting goods, hobby, musical instrument and bookstore sales increased 1.2%. Furniture store sales advanced 0.9%.

Sales rose 0.7% at clothing retailers and general merchandise stores. Motor vehicle and parts dealers registered an increase of 0.6%.

Food and beverage store sales gained 0.4%, while building material and garden equipment retailers were the only major category to record a decline, falling 0.2%.

A closely watched measure excluding food services, automobile dealers, building materials stores and gasoline stations, which feeds into calculations of gross domestic product, jumped 1.4%, sharply exceeding expectations for a 0.4% gain.