Who Cares About the Market Troubles, Americans Are Still Shopping!

Photo by Nightscream

We Americans love shopping as much as we love apple pie and imperial measurements, and a recent study showcased American retail resilience as sales continued to rise for a second straight month despite volatile financial markets. According to the Commerce Department, August saw a 0.2% increase on top of a 0.7% increase in July. While many expected consumer confidence to be shaken by the recent stock market shakeup and global concerns—and this did occur, to a degree—households are still spending, especially with lower energy prices and a solid labor market.

Automobile and parts dealers fared particularly well, seeing 0.7% August growth on top of an already stellar 1.3% increase in July. But while consumers are still holding strong, factories are struggling, as New York manufacturing shrunk for a second month with declining orders and employment. Gas stations also didn’t fare so well, with a 1.8% drop in receipts as the cost of gas dropped 7.5% in August. Regardless, this gives the economy a 3.7% annualized rate of expansion for this second quarter, and this is something that the Fed will have to consider when it makes its interest rate decision this week. [Bloomberg]

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