August Retail Sales Rise 0.4%

The Commerce Department announced a 0.4% rise in retail sales last month. The August figures were the highest since March and marked the second straight month of growth.

August retail sales excluding autos gained close to 0.6%. According to the August retail report, consumer spending will carry on at a low pace in Q3.

Consumer spending grew 2% on an annualized basis in Q2. In addition to this, economists anticipate consumer spending to come in close to the same figure in the current quarter.

Chief economist at FAO Economics, Robert Brusca, said, "We've been getting consistent, moderate growth in retail sales, it is moderate, but it is growth, it is not contraction." In reference to the chances of the US economy slipping back into recession, Brusca added, "All these people are worried about a double dip but that is not what is going on."

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