New York (Patrika English News): Wall Street indexes traded close to record highs on Tuesday after fresh data showed US retail sales rose more than expected in August, underscoring the resilience of American consumers despite signs of strain in the labour market.
Retail sales increased 0.6% from July, well above the 0.2% rise expected by economists. Excluding automobiles and gasoline, sales rose 0.7%, driven largely by higher spending at clothing stores and online retailers, pointing to a robust back-to-school shopping season. The figures are not adjusted for inflation.
The upbeat sales data helped push the S&P 500 and Nasdaq close to record levels, reinforcing optimism about consumer demand.
“Net, net, the consumer hasn’t pulled the plug on the economy yet,” said Chris Rupkey, chief economist at FWDBONDS. “Until they do, growth will continue to chug along at a moderate pace that seems to defy gravity in the face of rising tariff costs and store-bought prices.”
The data highlights that consumer spending — the backbone of the US economy — remains strong, even as households face higher prices and uncertainty from tariff pressures.